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by The British pound stabilized around $1.25 (GBPUSD) amidst investor anticipation of the Federal Reserve’s interest rate cuts, now expected as early as September, previously forecasted for November. This adjustment follows a weaker-than-expected US jobs report.
The shift in timeline underscores a crucial change in the US economic outlook, influencing global forex markets and prompting traders to recalibrate their strategies.
GBPUSD Fundamental Analysis – BoE Rate Cut Expected in August
BoE Rate Cut Expected in August
Conversely, the Bank of England (BoE) maintains its current interest rates, with no changes anticipated in the upcoming May meeting. However, market participants are now fully pricing in the likelihood of a rate cut by August, a month earlier than expected.
This comes after BoE Governor Andrew Bailey’s optimistic remarks in April, highlighting a significant downturn in UK inflation, which dropped to 3.2% in March 2024—its lowest since September 2021.
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