Pound Sterling flat vs USD as BoE decision and US PCE data loom
The GBP/USD pair struggles to capitalize on a modest Asian session uptick to the 1.3500 neighborhood, though it holds above the 100-day Simple Moving Average (SMA). Spot prices currently trade around the 1.3475-1.3480 region, nearly unchanged for the day, as traders look forward to the Bank of England (BoE) event and the US inflation data for a fresh impetus. The UK central bank is scheduled to announce its policy decision later today and is expected to keep interest rates on hold. The current market pricing, however, points to a greater possibility of two rate hikes in 2026 amid inflation risks stemming from the war-driven surge in energy prices. Hence, the focus will be on the accompanying policy statement and the post-meeting press conference, where comments from BoE Governor Andrew Bailey will be scrutinized for cues about the interest rate path. The outlook, in turn, will play a key role in influencing the British Pound (GBP). Traders will further take cues from the US Personal Consumption Expenditures (PCE) Price Index, which should further provide some meaningful impetus to the GBP/USD pair later today. In the meantime, the US Federal Reserve‘s (Fed) hawkish tilt, along with the US-Iran stalemate, might continue to act as