What chance a 0.50% rate cut from the Old Lady this week? -check out the GBP/USD

The Bank of England is the only major Central Bank due to decide on monetary policy this week. The markets generally expect the Old Lady (BOE) to cut rates by 0.25%, from 4.75% to 4.50%. Even before the most recent revelations from Trump, there was a good argument for the BOE to be  more aggressive than that. As far as this analyst is concerned, there is now an even stronger argument for a deeper cut on Thursday at 12pm GMT. The ineptitude of the UK government to implement any effective growth policy is another good reason for the BOE to counter the coming increase in wages and employment costs. The outlook for the UK is at best poor right now and the move from Trump could make it even worse, if he does move against the UK with trade tariffs. At the same time, we know UK inflation is sticky and a weaker Pound resultant from a larger rate cut would not help. Right now though it is probably the lesser of two evils. So, the GBP/USD is most definitely in the spotlight this week. The GBP/USD has pushed above 1.23 again this morning, but the outlook for further gains is as best uncertain in the coming days. The GBP/USD is right now at 1.2302