Yesterday, during London trading hours, BOE MPC member Mann said that the Bank of England (BOE) will continue its tight monetary policy in the future. This was surprising because, in the previous meeting, both Mann and Dinghra had supported a 0.5% interest rate cut. The market reacted, and the British pound rose from the mid-1.23 level to the mid-1.24 level.
The FTSE index also reached a new high, which led to more buying of GBP/JPY. This also helped GBP/USD rise.
UK Prime Minister Starmer said that he has a good relationship with U.S. President Trump. Because of this, some believe that the UK might avoid high tariffs from the U.S.
Since Mann’s statement was unexpected, the British pound may stay strong in the short term. However, if tomorrow’s UK GDP and industrial production data show that the UK economy is slowing down, expectations for a BOE rate cut could increase again, causing the pound to fall.
Expected GBP/USD Price Range: 1.2500 – 1.2380
Note: The information above does not guarantee any profits. Please make your own decisions when trading.