{"id":95335,"date":"2020-01-30T03:00:39","date_gmt":"2020-01-30T08:00:39","guid":{"rendered":"https:\/\/currencylive.com\/news\/?p=95335"},"modified":"2020-01-30T02:38:57","modified_gmt":"2020-01-30T07:38:57","slug":"102223-gbp-usd-boe-to-cut-or-not-to-cut","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/","title":{"rendered":"GBP\/USD: BoE To Cut or Not to Cut?"},"content":{"rendered":"

Central banks action or non-action is the central focus for GBP\/USD investors. The pound US dollar exchange rate<\/a> dropped for the fifth straight session versus the US dollar on Wednesday as investors digested the Fed\u2019s rate decision and as they look ahead to the highly anticipated Bank of England rate decision. The pound is falling again in early trade on Thursday.<\/p>\n

The pound<\/strong><\/a><\/p>\n

Pound investors are pricing in the chances of an interest rate cut by the BoE today at 50\/50. This has come down from around 70% at the beginning of last week. Data earlier in the month was disappointing as retail sales and inflation<\/a> missing forecast. However, more recent data has been upbeat. PMI\u2019s and business confidence have surpassed analyst forecasts whilst employment levels are the highest since 1970.<\/p>\n

Even if policy makers focus on the improving data, this could just be a temporary bounce following the improved political landscape after a decisive Conservative win in the December election. Data could quickly deteriorate as the reality of UK \u2013 EU trade negotiations hit. The two sides have a very limited time-frame to complete complex negotiations. Success is questionable at best, meaning a no deal Brexit<\/a> is still a very real possibility. Business investment is unlikely to ramp up amid continued Brexit uncertainty.<\/p>\n

Investors are only pricing in a 50% probability of the central bank cutting interest rates. This means if the BoE does decide to ease monetary policy the pound could fall sharply.<\/p>\n

The dollar<\/strong><\/a><\/p>\n

The dollar retained its strength in the previous session, although was unable to extend gains after the Federal Reserve monetary policy announcement. The Fed, as widely expected, kept interest rates on hold at 1.5%-1.75%. They made only one small change to the policy statement; they described household spending as \u201cmoderate\u201d rather than \u201cstrong\u201d.<\/p>\n

The continuity in policy and the statement indicates that the Fed still see the economy on a solid footing or \u201cin a good place\u201d as Fed Chair Jerome Powell often says. The dollar gave a muted reaction.<\/p>\n

Today investors will look towards the US GDP reading, which is expected to show growth of 2.1% in the fourth quarter, in line with previous estimates.<\/p>\n\n\n\n\n
What do these figures mean?<\/strong><\/td>\n<\/tr>\n
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.<\/p>\n

For example, it could be written:<\/p>\n

1 GBP = 1.28934 USD<\/em><\/p>\n

Here, \u00a31 is equivalent to approximately $1.29. This specifically measures the pound\u2019s worth against the dollar. If the US dollar amount increases in this pairing, it\u2019s positive for the pound.<\/p>\n

Or, if you were looking at it the other way around:<\/p>\n

1 USD = 0.77786 GBP<\/em><\/p>\n

In this example, $1 is equivalent to approximately \u00a30.78. This measures the US dollar\u2019s worth versus the British pound. If the sterling number gets larger, it\u2019s good news for the dollar.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

\n
Currencylive.com<\/em> is a news site only and not a currency trading platform.<\/em><\/h6>\n
Currencylive.com is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Central banks action or non-action is the central focus for GBP\/USD investors. The pound US dollar exchange rate dropped for the fifth straight session versus the US dollar on Wednesday as investors digested the Fed\u2019s rate decision and as they look ahead to the highly anticipated Bank of England rate decision. The pound is falling […]<\/p>\n","protected":false},"author":163946597,"featured_media":3729,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1379,1381],"tags":[1439,1657,1408,1438,1433,1392,1397,1398],"class_list":{"0":"post-95335","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gbp","8":"category-usd","9":"tag-boe","10":"tag-british-pound","11":"tag-fed","12":"tag-federal-reserve","13":"tag-rate-cut","14":"tag-sterling","15":"tag-us-dollar","16":"tag-usd"},"acf":[],"yoast_head":"\nGBP\/USD: BoE To Cut or Not to Cut? - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/USD: BoE To Cut or Not to Cut?\",\"datePublished\":\"2020-01-30T08:00:39+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/\"},\"wordCount\":735,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100108-gbp-aud-boe-rate-decision.jpg\",\"keywords\":[\"boe\",\"british pound\",\"fed\",\"federal reserve\",\"rate cut\",\"sterling\",\"us dollar\",\"usd\"],\"articleSection\":[\"GBP\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2020\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/\",\"name\":\"GBP\\\/USD: BoE To Cut or Not to Cut? - Currency Live\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100108-gbp-aud-boe-rate-decision.jpg\",\"datePublished\":\"2020-01-30T08:00:39+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/#primaryimage\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100108-gbp-aud-boe-rate-decision.jpg\",\"contentUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100108-gbp-aud-boe-rate-decision.jpg\",\"width\":800,\"height\":405,\"caption\":\"Pound Dives Versus Australian Dollar Ahead of BoE Rate Decision\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/102223-gbp-usd-boe-to-cut-or-not-to-cut\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"GBP\\\/USD: BoE To Cut or Not to Cut?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\",\"name\":\"Currency Live\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/currencylive.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\",\"name\":\"Fiona Cincotta\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"caption\":\"Fiona Cincotta\"},\"description\":\"Editor - Senior Financial Market Analyst Through over a decade\u2019s experience analysing and reporting on global currency markets, Fiona has a gained a deep understanding of the fundamental drivers of currencies. She is regularly quoted by international news organisations including Financial Times, Reuters and Bloomberg. Fiona is a familiar face after years of appearances on BBC, Sky News and Fox Business News.\",\"sameAs\":[\"https:\\\/\\\/www.linkedin.com\\\/in\\\/fiona-cincotta-bb4a4845\\\/\"],\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/author\\\/fiona-cincotta\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"GBP\/USD: BoE To Cut or Not to Cut? - Currency Live","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/","twitter_misc":{"Written by":"Fiona Cincotta","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/#article","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/"},"author":{"name":"Fiona Cincotta","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec"},"headline":"GBP\/USD: BoE To Cut or Not to Cut?","datePublished":"2020-01-30T08:00:39+00:00","mainEntityOfPage":{"@id":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/"},"wordCount":735,"image":{"@id":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100108-gbp-aud-boe-rate-decision.jpg","keywords":["boe","british pound","fed","federal reserve","rate cut","sterling","us dollar","usd"],"articleSection":["GBP","USD"],"inLanguage":"en-US","copyrightYear":"2020","copyrightHolder":{"@id":"https:\/\/currencylive.com\/news\/#organization"}},{"@type":"WebPage","@id":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/","url":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/","name":"GBP\/USD: BoE To Cut or Not to Cut? - Currency Live","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/#primaryimage"},"image":{"@id":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100108-gbp-aud-boe-rate-decision.jpg","datePublished":"2020-01-30T08:00:39+00:00","author":{"@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec"},"breadcrumb":{"@id":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/#primaryimage","url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100108-gbp-aud-boe-rate-decision.jpg","contentUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100108-gbp-aud-boe-rate-decision.jpg","width":800,"height":405,"caption":"Pound Dives Versus Australian Dollar Ahead of BoE Rate Decision"},{"@type":"BreadcrumbList","@id":"https:\/\/currencylive.com\/news\/102223-gbp-usd-boe-to-cut-or-not-to-cut\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/currencylive.com\/news\/"},{"@type":"ListItem","position":2,"name":"GBP\/USD: BoE To Cut or Not to Cut?"}]},{"@type":"WebSite","@id":"https:\/\/currencylive.com\/news\/#website","url":"https:\/\/currencylive.com\/news\/","name":"Currency Live","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/currencylive.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec","name":"Fiona Cincotta","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","caption":"Fiona Cincotta"},"description":"Editor - Senior Financial Market Analyst Through over a decade\u2019s experience analysing and reporting on global currency markets, Fiona has a gained a deep understanding of the fundamental drivers of currencies. She is regularly quoted by international news organisations including Financial Times, Reuters and Bloomberg. Fiona is a familiar face after years of appearances on BBC, Sky News and Fox Business News.","sameAs":["https:\/\/www.linkedin.com\/in\/fiona-cincotta-bb4a4845\/"],"url":"https:\/\/currencylive.com\/news\/author\/fiona-cincotta\/"}]}},"jetpack_featured_media_url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100108-gbp-aud-boe-rate-decision.jpg","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/95335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/users\/163946597"}],"replies":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/comments?post=95335"}],"version-history":[{"count":5,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/95335\/revisions"}],"predecessor-version":[{"id":95350,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/95335\/revisions\/95350"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media\/3729"}],"wp:attachment":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media?parent=95335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/categories?post=95335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/tags?post=95335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}