The British pound against the US dollar remains expensive. The current quote is 1.2392. To tell you the truth, the current quote of the pound looks even stronger keeping in mind how much the market was affected by the change of the PM and how hard it took the conservative financial policy of the BoE.
The Bank of England will attract attention today as well. A meeting is scheduled for this afternoon, at which the interest rate is likely to be increased by 50 base points. Hence, it will amount to 3.50% instead of the current 3.00%. The decision is expected to be made unanimously.
It will be interesting to see how the BoE assesses the inflation situation and the perspectives of the economy. The comments might remain cautious and restrained. As statistics demonstrated earlier, the CPI had left its all-time highs but can return there if nothing changes in the economy. There is a risk that the BoE will be more cautious than it is wise these days. For the pound, it might be negative. But while the USD is weak, the GBP will be aiming up.
