US dollar 'structural downtrend' set to benefit pound says UBS

Pound Sterling trades with caution against US Dollar ahead of Fed-BoE policy decision

The Pound Sterling drops to near 1.3330 versus the United States Dollar ahead of the Fed’s financial policy statement. The Fed is anticipated to hold rates of interest consistent, while the BoE is set to lower them on Thursday. US-China trade talks will be the crucial trigger for the international market. The Pound Sterling (GBP) trades very carefully to near 1.3370 versus the United States Dollar (USD) throughout North American trading hours on…

US dollar 'structural downtrend' set to benefit pound says UBS

UBS has said investors should expect strengthening of the pound against the US dollar over the next year as fears grow over the American currency’s “fragility.” The pound has surged almost 10 per cent against the US dollar since its recent low in mid-January, now sitting at $1.33. However, UBS analysts expect the surge to continue towards $1.39, with a year-end target of $1.40. Despite positive news emerging about potential trade deals, the US i…

Central bank preview: Wait-and-see approach from Powell, while BoE expected to cut

The Bank of England (BoE) and Federal Reserve are likely to take different approaches at their respective monetary policy meetings in a bumper week for central bank policy. The Federal Reserve meets today and tomorrow (6-7 May), ahead of the BoE’s Monetary Policy Committee meeting is on Thursday. Consensus expectations suggest the Fed will leave interest rates unchanged as the impact of tariffs come into focus, while the BoE is likely to cut. Fe…

Pound faces anxious wait ahead of Bank meeting

Sterling begins this shortened week under a little bit of downward pressure, with Thursday’s (8 May) meeting of the Bank of England’s Monetary Policy Committee likely to result in a cut to interest rates. A mixed week for the pound saw it batted back from 1% gains against the US dollar and euro to finish largely unchanged against those rivals. The US dollar meanwhile was supported by a more cooperative approach to trade from the federal governme…

Sterling gains against dollar ahead of this week's BoE meeting

The BoE is widely expected to cut rates a further 25 basis points to 4.25%