GBP/USD and EUR/GBP Await Key Bank of England Decision

The British pound strengthened after the US Federal Reserve meeting, where interest rates were left unchanged. However, the Fed's cautious tone on future monetary policy did not spark fresh dollar momentum.

Market attention is now focused on the Bank of England meeting, expected to be the main driver for sterling through the end of the week. Investors do not anticipate a change in interest rates but will closely watch the Monetary Policy Committee's vote split and comments from Governor Andrew Bailey.

The pound's near-term direction will depend primarily on the Bank of England's decision. Stronger data could support the euro, while weaker figures may reinforce expectations of further European Central Bank policy easing.