Pound down on rate cut expectations

Open demo account
FOREX trading implies serious risk and can result in the loss of your invested capital

Financial and commodity markets analytics

The British pound has come under pressure today after speculation by the market that a rate cut is on the cards from the Bank of England.

At8.57am (GMT) the British currency was trading at US$1.3075c down from US$1.3140c in yesterday’s trading.

Bank of England policymaker Martin Weale, turned dovish in an interview with the financial times where he noted that the latest purchasing managers index, which hit the market at it’s lowest level since the financial crisis was a real concern, and was a lot worse than expected.

Although Mr Weale didn’t explicitly mention that he would back a rate cut at next week’s board meeting his overall tone suggested he was headed that way.

“Weale has been hawkish for most of his tenure at the BOE, so his shift affected sterling.”noted Mansoor Mohi-uddin, a Singapore-based strategist at Royal Bank of Scotland Group Plc.

“The pound is set to stay under pressure as expectations build for next week’s MPC meeting and the BOE inflation report.” he added.

The currency has been under pressure ever since Britain took the decision to leave the European Union and the weakness is expected to continue as the country develops a plan to leave.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Fibo Markets

FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.) is authorized and regulated by the CySEC (licence no. 118/10) and operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.

Unfortunately, our services are not available to individuals residing in Canada, the United States of America, North Korea, Iran, Iraq, Israel, Australia, Belgium, or Japan.

29 Agias Zonis, 1st Floor, 3027, Limassol, Cyprus

© 1998—2023 FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.)

IMPORTANT: Please be informed, that our services are available for Professional Clients only. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Please note that our services are provided only to the residents of the following counties (in alphabetical order): Austria, Bulgaria, British Virgin Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Oman, People's Republic of China, Poland, Portugal, Romania, Russia, Slovakia,Slovenia, Spain, Sweden, Ukraine, United Arab Emirates.

Please feel free to contact out Support in order to get further assistance.