GBP Under Selling Pressure Amid Dovish Bailey Tone
The British pound (GBP) is facing selling pressure against its major currency peers, trading down 0.1% at around 1.3420 against the US Dollar (USD) during the European trading session on Tuesday.
Analysts at Rabobank highlight that GBP net shorts bounced higher last week ahead of the BoE policy meeting, underscoring renewed speculative pressure on the Pound.
Despite a more hawkish voting split than the market had expected from the MPC, Governor Bailey's tone was dovish, suggesting little support for the pound from the BoE.
The selling pressure in the GBP/USD pair is also driven by the higher US Dollar. As of writing, the US Dollar Index (DXY), which gauges the Greenback's value against six major currencies, trades slightly higher to near 100.05.