The Pound Sterling has strengthened after the Bank of England (BoE) cut interest rates by 25 basis points to 4.75%. While the rate cut was expected, the BoE’s dovish forward guidance has also supported the Pound.
Key Factors Influencing the Pound Sterling:
- BoE Rate Cut: The BoE’s decision to cut rates and its dovish outlook have supported the Pound.
- US Dollar: A potential correction in the US Dollar, following its recent rally, could also benefit the Pound.
- Global Economic Outlook: Concerns about global economic growth and trade tensions could impact the Pound’s performance.
Technical Analysis:
The Pound Sterling has recovered from recent lows, but the near-term trend remains bearish. The 20-day and 50-day EMAs are declining, indicating a potential downward trend.