The Pound Sterling (GBP) initially experienced a sharp rise against major currencies following the Bank of England's (BoE) decision to cut interest rates by 25 basis points to 3.75%. This move was anticipated by traders, leading to a brief surge in GBP as market participants reacted positively to the news. The GBP/USD exchange rate saw notable gains, reflecting a bullish sentiment among investors.
However, as the market absorbed the BoE's less dovish-than-expected forward guidance, these initial gains began to wane. Traders recalibrated their positions, leading to a pullback in GBP strength. The currency's fluctuations prompted increased trading activity, particularly against the Euro (EUR) and the US Dollar (USD), with market participants closely monitoring further developments in monetary policy and economic indicators that may influence future exchange rates.
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Data Source: FX Killer Analysis Team Updated: 2025-12-19 12:40
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.