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by The British pound dropped to $1.311, moving away from the highs of March 2022 seen in late September. This followed remarks from the Governor of the Bank of England suggesting that the central bank might reduce interest rates again in November.
The 4-hour chart below demonstrates the GBP/USD conversion rate.
GBPUSD Fundamental Analysis – 3-October-2024
In a Guardian interview, Andrew Bailey mentioned that the bank might quickly lower interest rates if inflation shows more positive signs. Currently, markets anticipate a 25 basis point reduction in rates next month, with a 40% likelihood of another cut in December.
Despite cutting rates by a quarter-point in August, the Bank of England maintained a steady interest rate of 5% in September.
Meanwhile, the pound is gaining against a weaker dollar as traders expect the U.S. Federal Reserve to ease monetary policies faster than the BoE and leading central banks. In September, the value of sterling rose by 1.9%.
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