GBPUSD is falling before the May meeting of the Bank of England.
The Pound sterling is looking rather weak against the USD. The current quote for the instrument is 1.2525.
The United Kingdom didn’t publish a lot of important macroeconomic statistics this week. However, there will be something worth paying attention to today – the Bank of England is scheduled to have another meeting.
Market expectations are rather mixed. On one hand, there is a chance the BoE might tighten its monetary policy and raise the benchmark interest rate by 50 basis points. However, it’s not the British regulator’s style. Besides, before raising the rate, the BoE usually provides market players with corresponding signals. On the other hand, the regulator may remain cautious, announce a minimum 25-point hike, and take a break to monitor the situation. In light of the current aggressive economic conditions, this conservative approach may put much pressure on the GBP.
On average, investors are expecting the BoE to raise the rate by 25 basis points after each meeting this year. However, there might be pauses between hikes, and the longer the pause, the more pressure on the Pound.
Investors’ attention will be focused on the number of votes in favour of a rate hike and the regulator’s comments after the meeting.