BoE Expected to Hold as Fiscal Risks Weigh on Pound
GBP/USD edged up to 1.3326 as UOB strategists flag fiscal uncertainties from PM Burnham's debut plans and oil price volatility.
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The British pound inched higher against the dollar, with GBP/USD trading around 1.3326, according to UOB strategists. Market attention remains on the Bank of England, which is widely expected to leave rates unchanged amid lingering risks.
UOB noted that UK government bonds (Gilts) are caught between competing forces: fiscal risks tied to Prime Minister Burnham's initial policy announcements and volatility in oil prices. These factors are contributing to an uncertain outlook for sterling, reinforcing the case for a cautious BoE.
Source: FXStreet Forex News