The British pound (GBP) has faced significant selling pressure against major currencies after the Bank of England (BoE) announced its monetary policy on Thursday. As anticipated, the BoE held interest rates steady at 4%. However, there was a lower than expected number of Monetary Policy Committee (MPC) members backing this decision to maintain rates.
Within the nine-member MPC, four officials favored cutting the interest rate by 25 basis points to 3.75%, while another three supported this move. Those advocating for the rate cut included policymakers Sarah Breeden, Dave Ramsden, Swati Dhingra, and Alan Taylor.
The BoE indicated that the risks associated with rising inflation are starting to ease, but weak demand may still influence inflation in the short term. “The concerns from prolonged and widening inflation have become less serious recently, while medium-term risks related to weak demand have become more evident,” the central bank noted in its report.
Moreover, the BoE left the door open for potential rate cuts if inflation pressure continues to decline. “If we see ongoing progress in reducing inflation, we may expect a gradual reduction in bank interest rates,” the central bank mentioned.
Investors are likely to closely watch BoE Governor Andrew Bailey’s upcoming press conferences for insights regarding the economic outlook, especially with potential tax hikes anticipated in the forthcoming autumn budget, scheduled for later this month.
UK Chancellor of the Exchequer Rachel Reeves is expected to announce these tax increases in the autumn budget.
Chancellor Reeves may, however, break his own rule of not increasing taxes on working individuals and could avoid borrowing for current public spending, attempting to address a £22 billion deficit in government funding.
Today’s Pound Price
Below is a table showing the percentage change of the British Pound (GBP) against major currencies today. The pound was notably weaker against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.30% | -0.18% | -0.31% | -0.10% | -0.13% | 0.01% | -0.25% | |
| EUR | 0.30% | 0.12% | -0.02% | 0.20% | 0.17% | 0.31% | 0.05% | |
| GBP | 0.18% | -0.12% | -0.12% | 0.09% | 0.06% | 0.20% | -0.06% | |
| JPY | 0.31% | 0.02% | 0.12% | 0.21% | 0.19% | 0.31% | 0.08% | |
| CAD | 0.10% | -0.20% | -0.09% | -0.21% | -0.02% | 0.10% | -0.15% | |
| AUD | 0.13% | -0.17% | -0.06% | -0.19% | 0.02% | 0.14% | -0.12% | |
| NZD | -0.01% | -0.31% | -0.20% | -0.31% | -0.10% | -0.14% | -0.26% | |
| CHF | 0.25% | -0.05% | 0.06% | -0.08% | 0.15% | 0.12% | 0.26% |
This heat map illustrates percentage changes across major currencies. The base currency is on the left, and the quote currency is at the top. For instance, selecting British Pounds and moving over to US Dollars indicates the percentage change for GBP/USD.
Market Summary: GBP Loses Early Gains Against USD
- Sterling has managed to recoup some of its early gains against the US dollar (USD) following the BoE’s interest rate announcement, though the GBP/USD pair was still up 0.15% around 1.3070 in late European trading.
- The strengthening of the pair coincided with a pause in the US dollar’s rally after the October ADP employment changes and ISM Services Purchasing Managers’ Index (PMI) data were released.
- At the moment, the US Dollar Index (DXY), which monitors the dollar’s value against six major currencies, was stable around 100.05.
- On Wednesday, the U.S. ADP jobs report revealed an addition of 42,000 new jobs in October, surpassing the expectations of 25,000. September also saw 29,000 layoffs.
- The positive US economic data typically enhances the USD’s appeal; unless circumstances change drastically, this recent adjustment might not last long.
- In addition, the US dollar is expected to appreciate due to a decrease in dovish expectations from the Federal Reserve concerning its December monetary policy meeting.
- The likelihood of the Fed reducing rates by 25 basis points (bp) to 3.50-3.75% in December dropped to 62.5% from 94.4% prior to the October 29 announcement, as reported by the CME FedWatch tool.
- Last week, Fed Chairman Jerome Powell remarked at a press conference following the monetary policy decision that a rate cut in December was “far from a foreseeable conclusion.” He noted there were “very different views” among officials at the meeting and emphasized that “we haven’t made a decision about December yet.”
Technical Overview: GBP Holds Immediate Support at 1.3000
On Thursday, the British pound rose to approximately 1.3085 against the US dollar. It is trading close to the key level of 1.3000, the lowest point in nearly six months reached earlier this week. The overall trend for the pair remains bearish, remaining below the 200-day exponential moving average (EMA) around 1.3263.
The 14-day Relative Strength Index (RSI) is currently below 30.00, signaling a bearish momentum.
If the price continues downwards, the April lows near 1.2700 will be a crucial support area. Conversely, on the upside, the high from October 28 around 1.3370 poses a key resistance point.
Economic Indicators
Bank of England Interest Rate Decisions
The Bank of England (BoE) announces its interest rate decisions at the conclusion of its regularly scheduled meetings. A hawkish stance regarding inflation usually encourages a bullish outlook on the British pound (GBP), while a dovish approach tends to be bearish for sterling.
Final Release:
Thursday, November 6, 2025 12:00
Frequency:
Irregular
Actual:
4%
Consensus:
4%
Previous:
4%
Source:
Bank of England
