GBP/USD extends fall to below 1.28 as more voices call for BOE cut

The GBP/USD has continued to fall back since before the European equity market opening, as noted in a previous update. Well, the GBP/USD has now fallen below the 1.2800 handle, as the consensus for a 0.25% rate cut from the Bank of England later today comes to the fore. There are doubts here on that prospect though, because it might still be in the balance, as to how the BOE will act today. The truth is that TAX increases are coming for the consumer and that has been cynically set in place by the new UK chancellor earlier this week. However, those will not come until October and that means the BOE might be getting ahead of themselves if they move to cut today. So, whilst the consensus is now for a cut today, it is not a certainty. The Pound is ignoring that doubt right now though and that has seen further weakness versus the dollar and the Euro since the last update. The GBP/USD is currently trading at 1.2791