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Has the Fed spoiled the party for the Pound?

The whole immediate dynamic for the dollar has certainly been given a shot in the arm from that one Powell comment last night and we are still seeing that play out this morning. The noted level on the EUR/USD has now given way, as the Euro slips below 1.0793 and might have tripped some stops in the process too. That is weighing on the pound as well right now and forcing the GBP/USD to below 1.2650 at the same time. Of course later this morning we get the monetary policy decision from the Bank of England (BOE) and that might shift the dial for the pound and right now it seems like it needs to. That is because the GBP/USD is feeling the heat of this Dollar rebound. The view here; is that the BOE will dig its heels in again later today and re-iterate the previous message about UK rates remaining higher for longer. However, if they do not do that, then the Pound could be in for a rough ride right now. There will be more to add on this as the morning unfolds. Meantime, the GBP/USD is currently trading at 1.2645 
 

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