GBP/USD reclaims 1.24

On Friday the GBP/USD came under pressure, after stalling earlier in the afternoon at 1.2446. The pound dropped back into the 4pm London fix and later fell to as low as 1.2379, before ending the session and the week at 1.2383. It has rebounded a little today though, thanks mostly to a lack of traction for the dollar. The range so far has been very tight though, in keeping with what has transpired across many other markets today. Of course Thursday is a potentially big day for the pound, with the BOE expected to raise raise rates that day. Perhaps the more important issue for the pound might not be the increase itself, but whether or not the Bank makes it categorically clear; that any such rise will define the end of the run in higher UK borrowing costs. At the same time, if the BOE fails to act then that will be different matter altogether. Please do not forget either, that ahead of the BOE we have the Fed to consider too. There will be plenty to add on all that as the week progresses. The range seen so far today has been covered by 1.2380 to 1.2404. The GBP/USD is just now at 1.2402