GBP/USD halts its three-day winning streak, trading around 1.2490 during the Asian hours on Thursday.
GBP/USD moves little as traders adopt caution ahead of the BoE’s interest rate decision on Thursday. The BoE is widely anticipated to deliver a 25 basis point rate cut in February. The US ISM Services PMI eased to 52.8 in January from 54.0 in December. The Pound Sterling could face downward pressure amid expectations that the Bank of England will resume its policy-easing cycle, likely lowering interest rates by 25 basis points to 4.5% later in the day.
On Thursday, Federal Reserve Vice Chair Philip Jefferson expressed his satisfaction with keeping the Fed Funds rate at its current level, stating that he would assess the overall impact of Trump's policies before making further decisions. He also emphasized that the Fed's rate remains restrictive for the economy, even with a 100-basis-point decline. On Wednesday, the weaker US Services Purchasing Manager Index weighed on the Greenback. The US ISM Services PMI eased to 52.
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