Pound Sterling remains Sluggish near 1.2540 as Investors anticipate the BoE Lowering Interest rates before the Fed does.

The Pound Sterling (GBP) is trading near 1.2550 against the US Dollar in Tuesday’s early American session. The GBPUSD is under pressure as Investors focus on the Bank of England’s (BoE) monetary policy, which is likely to keep Interest rates unchanged at 5.25%.

The US Dollar remained constant, with the US Dollar Index (DXY). Which tracks the value of the Greenback against six major currencies, trading around the critical support level of 105.00.

Despite recent weakness in a spate of economic indicators such as weaker labor demand, slower wage growth. And a contraction Services PMI in April, investors appear to be confident in the US economy’s prognosis. The economy’s overall strong performance will allow the Federal Reserve (Fed) to take its time cutting interest rates in comparison to other developed-country central banks.

Still, disappointing US economic data has fueled anticipation. That the Fed will lower interest rates at the September meeting. The timing of the Fed’s rate cuts remains uncertain. As policymakers believe the existing monetary policy framework is enough. On Monday, New York Fed President John Williams stated. “Eventually, we’ll have rate According to Reuters, monetary policy is currently in a “very good place,” notwithstanding the need for reduction.

Daily Market movers: Pound Sterling remained depressed ahead of the BoE policy meeting.

The pound sterling falls significantly after encountering strong selling pressure at the round level resistance of 1.2600. The GBPUSD pair falls as investors remain confident that the Bank of England would cut interest rates earlier than the Fed.
Financial markets expect the Bank of England to begin lowering interest rates in August, followed by the Federal Reserve in September. Despite a miss in April’s Nonfarm Payrolls (NFP) and Services PMI statistics, the US Dollar remains persistently supported.
The BoE’s monetary policy statement will provide investors with additional clarity on the UK interest rate outlook. The policy choice will be announced on Thursday.

BoE meeting, UK interest rates are Projected to remain Unchanged at 5.25% for the sixth Consecutive time.

The Bank of England is widely predicted to retain Interest rates at 5.25% for the sixth Consecutive time. As a result, any comments on the interest rate outlook will be more relevant to Investors. In predicting the next move in the pound sterling.
Last month, BoE Governor Andrew Bailey expressed hope. That headline inflation would revert to the goal pace of 2% in April. In addition, during the most recent monetary policy meeting. He stated that he was comfortable with market forecasts of two or three rate cuts this year.