GBPUSD Analysis – December-11-2023
The British Pound fell to its lowest point since November 22nd, nearing the $1.25 level. This drop occurred as market participants processed the latest unexpectedly robust U.S. employment figures. At the same time, there’s keen anticipation for the Bank of England’s (BoE) policy meeting set for this Thursday.
It’s widely expected that the BoE will hold interest rates at their highest in 15 years. Market traders are especially interested in the central bank’s economic growth and inflation views. These insights are crucial as they hint at when interest rates might be reduced. Current market predictions indicate that the BoE might lower rates in June, later than the European Central Bank (ECB) and the Federal Reserve’s expected timing in March and May, respectively. However, despite these market forecasts, the BoE’s officials, including Governor Andrew Bailey, have consistently expressed a cautious approach. Governor Bailey has underscored the need for sustained high-interest rates to bring inflation back to its target range effectively.