The GBP/USD exchange rate stayed under the 1.3000 threshold following the Bank of England (BoE) and Federal Reserve’s recent rate decisions. Both central banks opted to hold their current rates, reflecting caution amid slowing global economic conditions. The Bank of England kept its key interest rate unchanged, signaling concerns about economic stability and rising inflation pressures in the UK.
Meanwhile, the Federal Reserve also held steady on rates, focusing on maintaining financial stability amid fluctuating inflation and labor market dynamics. The strength of the U.S. dollar weighed on GBP/USD, as market participants leaned towards the dollar’s safe-haven appeal given economic uncertainties.
Currency analysts indicate that the pair may face ongoing pressure near this level, with investor sentiment sensitive to upcoming economic indicators and further central bank updates.
