The British Pound edged lower ahead of the Bank of England’s (BoE) interest rate decision, where policymakers are widely expected to deliver a 25 basis point rate cut, moving the bank rate to 4.25% from 4.5%.
Markets are focused on the BoE’s Monetary Policy Report, minutes, and post-decision remarks from Governor Bailey, all scheduled throughout the morning.
Today’s Currency Moves
- GBP/USD is down 0.12% at 1.3276.
- EUR/USD fell 0.15% to 1.1283.
- NZD/USD was the weakest of the majors, dropping 0.70%.
- USD/JPY rose 0.46%, tracking higher Treasury yields.
- The US Dollar Index remains broadly firm ahead of North American trading.
Key Drivers Today
All Eyes on the Bank of England
- The BoE vote split is expected to show 9 members favouring a cut, reflecting mounting pressure from weaker growth data and sticky wage inflation.
- The MPC minutes and Monetary Policy Report will shape short-term GBP direction.
- Governor Bailey’s 11:30 speech will be key to market interpretation.
NZD Drops Sharply
The New Zealand Dollar underperformed, shedding 0.70%, with no clear data catalyst. The move may reflect positioning ahead of US CPI tomorrow and broader USD strength.
Currency Watch – Market Snapshot
| Pair | Price | Daily Change |
|---|---|---|
| EUR/USD | 1.1283 | ▼ 0.15% |
| GBP/USD | 1.3276 | ▼ 0.12% |
| AUD/USD | 0.6411 | ▼ 0.21% |
| NZD/USD | 0.5920 | ▼ 0.70% |
| USD/JPY | 144.48 | ▲ 0.46% |
| USD/CHF | 0.8280 | ▲ 0.46% |
| USD/CAD | 1.3877 | ▲ 0.28% |
Looking Ahead
With the BoE decision expected mid-morning, GBP volatility may spike as traders digest not only the headline rate but also the tone of the outlook.
Speeches from both the BoE and Bank of Canada governors may add to the day’s narrative.