Ahead of the Bank of England's next policy meeting which will begin on Wednesday and conclude on Thursday, FX traders appear wary of keeping the Pound Sterling propped up. Analysts don't expect to see much range for the GBP/USD pair ahead of the meting and expect it to trade within narrow ranges, especially given the lack of key UK economic data and simply as a cautionary tactic as a result of the trade war escalation between China and the United States government. Concern over another possible confrontation involving the UK government's plan for a “soft” Brexit are also weighing on the Pound. Analysts believe that the Prime Minister is in for a hard sell trying to gain support for her plans from her party.
As reported at 10:49 am (BST) in London, the GBP/USD was trading at $1.3246, a loss of 0.21%, and not too far from the session low of $1.3226 while the peak is at $1.3281. The EUR/GBP is trading at 0.87579 Pence, up 0.26402%; the high for the trading session has been recorded at 0.87645 Pence, while the low is at 0.87273 Pence.
Market Players Not Confident in BoE Outcome
The Pound has been under pressure as expectations have faded that the BoE would further embark on a tightening policy, essentially following the lead of the Federal Reserve Bank. The latest economic data, which has generally been more disappointing than favorable, has failed to offer any support for the currency. Markets are now evenly split on the possibility that the BoE will hike rates soon.