GBP/USD Faces Hawkish Test from BoE Amid Inflation Risks
The Pound-Dollar exchange rate is under pressure unless the Bank of England delivers a sufficiently hawkish message after an inconclusive Federal Reserve decision.
The GBP/USD weakened on Thursday morning as markets turned their attention to the Bank of England following a divided Federal Reserve policy decision.
The decision was more divided than expected, with three policymakers voting for an immediate 25-basis-point rate increase because of persistent inflation risks.
Fed Chair Kevin Warsh reaffirmed the central bank's commitment to returning inflation to its 2% target but provided few firm clues over the timing of any future policy move.