The Pound Sterling declined against major currencies on Tuesday, ahead of a speech by Bank of England (BoE) Governor Andrew Bailey. Investors are anticipating guidance on interest rate expectations, which could significantly impact the Pound’s valuation.
Key Factors:
- BoE Interest Rate Outlook: The BoE Governor’s speech is expected to provide insights into future interest rate decisions.
- US Election Uncertainty: The upcoming US presidential elections and the potential impact on trade relations are weighing on the Pound.
- US Dollar Strength: The US Dollar’s strength, driven by expectations for a less aggressive Federal Reserve, is also putting pressure on the Pound.
Technical Analysis:
- The Pound Sterling is trading below the 1.3000 psychological level.
- The 14-day Relative Strength Index (RSI) is hovering near 40.00, indicating bearish momentum.
- Key support levels include 1.2970 and 1.2920, while key resistance is at 1.3110.
