GBP Falls on BoE Decision as USD Gains from Hawkish Fed

The British Pound (GBP) fell against its major currency peers following the Bank of England's (BoE) monetary policy decision, keeping interest rates steady at 3.75% as expected.

The initial reaction to the decision was slightly positive, but the GBP/USD pair edged lower from its intraday high of 1.3405 to near 1.3380. The BoE's decision saw a lower-than-expected number of Monetary Policy Committee (MPC) members voting for a hold.

The US Dollar (USD) regained positive traction after the previous day's post-FOMC decline, driven by rapidly changing inflationary dynamics due to volatile oil prices and escalated US-Iran tensions. The safe-haven Greenback is now firmly on the table for rate hike bets.