Pound Slips Below 1.3450 as Investors Look to BoE Remarks for Direction
The British pound edged lower against the US dollar, slipping beneath the 1.3450 mark on Monday as traders turned cautious ahead of a scheduled speech by Bank of England Deputy Governor Dave Ramsden. The move reflected broader uncertainty around the UK’s monetary policy path amid mixed economic signals.
Markets are closely watching Ramsden’s comments for any clues about the BoE’s next steps, especially as investors weigh the timing and pace of potential interest rate adjustments. The pound’s decline comes amid a broader period of consolidation in currency markets, with the US dollar holding firm following stronger-than-expected economic data.
Despite a recent uptick in UK inflation, policymakers have so far remained cautious about tightening too aggressively. “There’s still a communication gap between the BoE and the markets,” said one FX strategist. “Investors want clarity on whether policy will remain tight or if rate cuts could come into play by year-end.”
The pound’s weakness has also been driven by persistent concerns over the UK’s growth outlook. Sluggish consumer demand and softening business investment have kept a lid on confidence, even as the BoE attempts to strike a balance between taming inflation and supporting economic activity.
Meanwhile, the US dollar has remained broadly supported, with recent data reinforcing expectations that the Federal Reserve will keep rates elevated for longer. This interest rate divergence continues to put downward pressure on GBP/USD.
Traders will be watching both Ramsden’s speech and key UK economic releases later this week for direction. Until then, sterling may remain vulnerable as markets navigate shifting expectations on both sides of the Atlantic.
