The Pound Sterling was trading near to a 1-week trough versus the US Dollar as FX traders await tomorrow’s policy decision from the Bank of England. Dovish statements by a number of the voting members have raised expectations that another rate cut is highly likely. Analysts are forecasting that at least three members will vote to lower rates up from two last month, with six members voting to leave rates unchanged, down from seven last month. The minutes of the last policy meeting will also be released which would better help gauge sentiment among the Monetary Policy Committee, and afterward a speech by the BoE Governor Carney should solidify sentiment.
As of 10:56 am in London, the GBP/USD was trading lower at $1.3009, down 0.1512% off the session trough of $1.30035. The EUR/GBP was lower at 0.8456 Pence, a loss of 0.0355%; the pair has ranged from 0.84466 Pence to 0.84649 Pence in today’s session. The GBP/JPY was also lower at 141.961 Yen, down 0.2347%, not far from the session low of 141.813 Yen.
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Concerns over how the British economy will fare after it leaves the EU are also giving investors pause. The government is about to introduce legislation that would put halt automatic rights for vessels registered in the EU to fish in UK sovereign waters. This new wrinkle in the dialogue is likely to be only the first of many says some analysts. They say that it is very likely that the British government will need to compromise on a number of issues, including environmental protections and consumer rights, if it can even hope to maintain access to the EU marketplace.