The Pound Sterling made headway against its US rival and the Euro during London trade on Thursday as FX traders reevaluate the possibility of an imminent rate cut from the Bank of England. Yesterday, Andrew Bailey, who will take over the helm of the BoE from Andrew 
Carney, told lawmakers in Parliament that the central bank was looking for more clarity on the impact of the Coronavirus on the UK economy before adjusting policy. The knee-jerk reaction in the wake of the Federal Reserve's emergency move had many analysts and traders pondering the same fate for the Pound. Relief that, at least for the time being, that the status quo will be maintained helped to revive Sterling.
As of 11:17 am in London, the GBP/USD was trading at $1.2905, a gain of 0.2938% and sliding from the session peak of $1.29315. The EUR/GBP was lower at 0.8648 Pence, a loss of 0.0127%; the pair has ranged from 0.86208 Pence to 0.86611 Pence in this trading session.
Bank of Canada Follows Fed's Lead
Late yesterday, the Bank of Canada announced that it would be lowering its benchmark lending rate to 1.25%, a 50 basis points reduction and twice as large as analysts had expected. In the statement, the BOC said that its decision was based on growing concerns that the Coronavirus impact would be detrimental to an already softening economy. A disruption in supply chains and declining confidence among consumers and businessmen solidified their thinking. Additional rate cuts would be considered, according to the statement, if the situation warranted. The USD/CAD was trading at C$1.3410, a gain of 0.17%; the pair ranged from C$1.33821 to C$1.34143 in this session.