The Pound continues to come under pressure ahead of today's meeting of policymakers at the Bank of England. Against the US Dollar, Sterling hit a fresh 7-month trough as wary FX traders await today's decision on a 2018 rate increase. The latest poll by economists shows the BoE maintaining their current rate stance, and fewer economists were optimistic of an August rate increase. The BoE has raised interest rates only once since the financial crisis took hold in 2008; however, the majority of economists polled are relatively confident that there will be one additional rate hike before the year draws to a close.
As reported at 10:30 am (BST) in London, the GBP/USD was trading at $1.3116, down 0.45% and off the session trough of $1.3102; the pair's peak for the session was recorded at $1.3178. The EUR/GBP is trading at 0.87826 Pence, up 0.01%; the pair's daily range is 0.87811 Pence to 0.88000 Pence. Against the safe haven Yen, the GBP/JPY was trading at 144.819 Yen, down 0.40%; the pair has ranged from 144.601 Yen to 145.685 Yen.
Central Bank Guidance Highly Relevant
Pollsters are divided on the possible BoE outlook, with some economists believing the BoE could provide upbeat guidance given the recent signs of a tentative economic recovery. Others, however, believe that the potential for a hard Brexit has cast too much doubt on the UK's economic recovery and thus the BoE is not likely to provide any commitment or clarity as regards its interest rate guidance.