GBPUSD extends losses ahead of the BoE’s interest rate decision on Thursday.
GBPUSD continues to fall for the third time in a row, trading at 1.2490 during Thursday’s Asian session.
The BoE is projected to keep its policy rate at 5.25% until September.
The Bank of England (BoE) will announce its interest rate decision on Thursday. With the assumption that it will remain at 5.25%.
Investor expectations for prospective interest rate reduction by the Bank of England (BoE) have been pushed back until September. Owing to concerns over robust wage growth in the United Kingdom (UK). This wage growth contributes to core. Inflation, the central bank’s favored inflation indicator. The annual inflation rate fell to 3.2% in March, from 3.4% in February. However, it remained marginally above than the market’s projection of 3.1%. This was the lowest rate since September 2021.
The US dollar is rising on predictions that the Fed would maintain interest rates higher for an extended period of time.
Across the pond, the US Dollar (USD) is gaining momentum on predictions. That the Federal Reserve (Fed) would sustain rising interest rates. Furthermore, higher US Treasury rates benefit the US Dollar (USD), which weakens the GBPUSD pair.
From the Federal Reserve (Fed), Boston Fed President Susan Collins stressed on Wednesday the significance of a time of slowdown in the US economy in order to meet the central bank’s 2% inflation target. On Tuesday, Minneapolis Fed President Neel Kashkari stated that the current outlook is According to Reuters, interest rates are expected to remain steady for an extended period.
