The sterling pound advances slightly before the BOE policy decision and the United Kingdom’s employment data

• The sterling pound maintains profits about 1.3000 against the US dollar while the DXY index struggles to maintain the minimum of five months.
• Fed officials could project a greater number of interest rate cuts this year.
• The Fed and the BOE are expected to maintain the stable interest rates on Wednesday and Thursday, respectively.

The sterling pound (GBP) is slightly above in front of its main peers, with investors focused on the decision on interest rates of the Bank of England (BOE) on Thursday. The operators are increasingly sure that the BOE will keep the interest rates of stable loans in 4.5%, with a 7-2 vote.

The members of the Monetary Policy (MPC) Committee of the BOE, Catherine Mann and Swati Dhingra, support a cut of interest rate cut are expected. Both officials voted in favor of a reduction in interest rates than usual for 50 basic points (PB) at the February policy meeting, while others favored a usual 25 -bp cut.

Investors will also focus on the orientation of the BOE on monetary policy and how much the tariff war led by US President Donald Trump could impact the economic perspectives of the United Kingdom (UK). The operators expect the BOE to cut interest rates twice more this year, since the Central Bank reduced its growth forecast for the Gross Domestic Product (GDP) for the year to 0.75% at the February policy meeting.

On Monday, the Organization for Economic Cooperation and Development (OECD) reduced its British growth prognosis for this year to 1.4% from 1.7% projected in December, amid the global economic uncertainty due to the tariff agenda of President Trump.

On Thursday, investors will also focus on the United Kingdom labor market data for the three months that ended in January before the BOE policy meeting.

What moves the market today: the sterling pound clings to profits against the US dollar

• The sterling pound clings to profits near the psychological figure of 1.3000 against the US dollar (USD) during the European negotiation hours on Tuesday. The GBP/USD torque demonstrates strength while the DXY index, which follows the value of the dollar against six main currencies, struggles to maintain the minimum of five months of 103.20.
• The dollar faces pressure since investors expect Federal Reserve officials (FED) to guide more interest rate cuts this year when they finish the March policy meeting on Wednesday. In December, Fed officials collectively guided two interest rate cuts in 2025.
• The Fed will surely maintain stable interest rates in the range of 4.25% -4.50% per second time. However, the Central Bank could adopt a slightly Dovish tone about monetary policy perspectives amid the relaxation of inflationary pressures and the deterioration of consumer confidence.
• The United States Consumer Price Index (ICC) (US) 64.7.

Technical Analysis: The sterling pound clings to profits around 1.3000

The sterling pound is firmly traded by a new four months around the psychological level of 1.3000 against the US dollar on Tuesday. The torque was established above the 61.8%fibonacci setback, drawn from the maximum of the end of September to the minimum of mid -January, in 1,2930.

The long -term perspective of the GBP/USD torque remains bullish since it remains above the 200 -day exponential (EMA) mobile average, which is around 1,2700.

The 14 -day relative force (RSI) index remains above 60.00, indicating that a strong bullish impulse is intact.

Looking down, the 50% setback in 1,2767 and the 38.2% setback in 1,2608 will act as key support areas for the torque. On the positive side, the maximum of October 15, 1,3100 will act as a key resistance zone.