GBP/USD Moves Below 1.2500 Ahead Of BoE Policy Decision

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GBP/USD extends losses ahead of the interest rate decision by BoE on Thursday.

BoE is expected to maintain its policy rate at 5.25% until September.

The US Dollar is strengthening on the expectations of the Fed keeping higher rates for an extended period.

GBP/USD extends its losing streak for the third successive session, trading around 1.2490 during the Asian session on Thursday. Thursday brings the Bank of England (BoE) interest rate decision, with expectations of maintaining interest rate at 5.25%.Investor expectations regarding potential interest rate cuts by the Bank of England (BoE) have been delayed until September, amid concerns about strong wage growth in the United Kingdom (UK). This wage growth is contributing to core inflation, which is the central bank’s preferred inflation measure. The annual inflation rate dropped to 3.2% in March, down from 3.4% in February. However, it stayed slightly above the market expectation of 3.1%. This marked the lowest rate since September 2021.Across the pond, the US Dollar (USD) is gaining ground due to the expectations of the Federal Reserve (Fed) maintaining higher interest rates. Additionally, the higher US Treasury yields support for the US Dollar (USD), undermining the GBP/USD pair.From the Federal Reserve (Fed), Boston Fed President Susan Collins emphasized on Wednesday the importance of a period of moderation in the US economy to achieve the central bank’s 2% inflation target. On Tuesday, Minneapolis Fed President Neel Kashkari said that the prevailing expectation is for rates to stay unchanged for a considerable period, as per Reuters reports.

GBP/USD
 

OVERVIEW Today last price 1.2491 Today Daily Change -0.0007 Today Daily Change % -0.06 Today daily open 1.2498

 

TRENDS Daily SMA20 1.2482 Daily SMA50 1.2604 Daily SMA100 1.264 Daily SMA200 1.2545

 

LEVELS Previous Daily High 1.2516 Previous Daily Low 1.2468 Previous Weekly High 1.2635 Previous Weekly Low 1.2466 Previous Monthly High 1.2709 Previous Monthly Low 1.23 Daily Fibonacci 38.2% 1.2486 Daily Fibonacci 61.8% 1.2497 Daily Pivot Point S1 1.2472 Daily Pivot Point S2 1.2446 Daily Pivot Point S3 1.2424 Daily Pivot Point R1 1.252 Daily Pivot Point R2 1.2542 Daily Pivot Point R3 1.2568

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