Pound Trade Jumpy Ahead of BoE

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pound sterlingThe Pound Sterling drifted close to a one-week trough against the US Dollar during London trade on Thursday as market players  focus on the Bank of England meeting. Analysts largely expect that the BoE will maintain its key policy rate at the 0.75% level, and will be relatively quiet on the possible direction of future interest rates, at least until after the general election and the Brexit.

As of 10:44 am in London, the GBP/USD was trading higher at $1.2865, a gain of 0.0996%, and moving off the session low of $1.28368. The EUR/GBP is also higher at 0.8612 Pence, up 0.0302%; the pair has traded from a low of 0.86017 Pence to a high of 0.86205 Pence.

Outlook for UK Downgraded

Economists believe that the BoE will address the outlook by next year, though, as the signs have all been pointing to a weaker UK economy, As of now, markets believe there is a 55% likelihood of at least one rate cut of 25 basis points next year. Until recently, many economists had been forecasting that the UK central bank would be raising rates in 2020, but many have downgraded their outlook.

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.