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Indonesia News Portal for Traders | Financial & Business Updates

8 August 2025 12:19  |

BoE Eases Interest Rates, But Hawkish Tone Lifts GBP/USD

The GBP/USD currency pair showed subdued movement after the Bank of England (BoE) decided to cut interest rates with a cautious (hawkish) approach, pushing the pound to a strong position against the US dollar.

The BoE cut interest rates by 0.25% to 4.00%, but the hawkish tone actually strengthened sterling. The monetary policy committee was split—four members favored a steady rate, four a cut, and one member favored a more aggressive cut—implying caution in managing inflation risks.

The US dollar also weakened due to the Fed's rate cut signal, reinforced by the appointment of a dovish candidate for governor.

The pound held above 1.3400 after rebounding from an intraday support zone.

Technical indicators show strong bullish momentum. Following the BoE's announcement, GBP/USD broke through resistance above 1.3400 and now opens the door to a move towards the psychological level of 1.3500.

Source: Newsmaker.id

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