FX.co ★ Pound Steadies Near One-Month Low Ahead of Fed and BoE Decisions

The British pound hovered around $1.33 on Wednesday, little changed from the previous session and trading near its weakest level in almost a month, as investors awaited key central bank decisions — from the US Federal Reserve later in the day and the Bank of England on Thursday.

The Fed is widely expected to leave interest rates unchanged, although markets still assign roughly a 30% probability to a 25-basis-point increase. In the UK, the BoE is likewise anticipated to keep the Bank Rate at 3.75%, with attention centered on the voting split for clues about the future policy trajectory.

Recent data showed UK inflation easing to a 15‑month low of 2.6% in June, undershooting the BoE’s forecast and reinforcing expectations of a pause. However, concerns remain that the recent surge in energy prices could reignite inflationary pressures in the coming months as higher costs filter through to households and businesses.