GBPUSD Nears $1.26 – Cautious Bank Signals Ahead

GBPUSD Analysis – At the close of March, the British pound neared the $1.26 level, almost hitting its February 19th low and edging towards a roughly 1% quarterly downturn compared to the USD. This movement came as the market processed wary comments from bank officials.

Fed Governor Waller highlighted that the latest inflation figures lent weight to holding off on lowering short-term interest rates in the US. However, he left the chance for reductions open later. In Britain, the Bank of England’s Haskel mentioned that discussing lowering rates should not happen anytime soon.

Meanwhile, Mann, another official, advised against expecting too many rate cuts this year, suggesting the UK is likely to wait for the Fed to make a move. During its March assembly, the BoE kept rates steady, with two members who had earlier pushed for an increase now preferring to wait. This shift signaled a more cautious approach than many had predicted.

GBPUSD Nears $1.26 – Cautious Bank Signals Ahead