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BOE in focus for the GBP/USD later this week

The only other major Central Bank monetary policy decision due this week comes from the UK and the Bank of England (BOE). That is due at 11am GMT on Thursday (May 9) and the markets expect the BOE to keep the base rate on hold at 5.25%. The most recent narrative from the BOE has most definitely been dovish and that kept the bias for a rate cut this summer on the table, but it would unlikely to happen this week, because once again the latest UK CPI and RPI data has shown itself to be very sticky. Furthermore, it would seem possible; the BOE might want to tie in a cut with the ECB and that we know is pretty much a slam dunk for June- more to follow on that in due course. On Friday the GBP/USD failed to hold a rise above 1.26 following the weaker than expected US Jobs and ISM reports. The Pound dropped back from a high at 1.2634 to later close the week at 1.2547. That close was bang on the 200 day moving average, in place then at exactly the same price. Overnight the price action has most camped north of that 200 day moving average (still in place at 1.2547). The range seen has been covered by 1.2537 to 1.2557. It is just now trading at 1.2557

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