The post Pound Sterling holds gains above 1.3650 as BoE rate decision looms appeared on BitcoinEthereumNews.com.

The GBP/USD pair gains momentum to around 1.3685 during the early European session on Tuesday. The Pound Sterling (GBP) gathers strength against the Greenback on the cautiously hawkish stance of the Bank of England (BoE). All eyes will be on the BoE interest rate decision later on Thursday.  The BoE’s Monetary Policy Committee voted 5-4 to cut the Bank Rate in December, the fourth quarter-point reduction of 2025. But most of its policymakers suggested the pace of rate cuts could slow. The UK central bank will announce its policy decision later this week, and most economists expect the UK central bank to keep the benchmark rate on hold at 3.75% due to persistent inflation.  On the other hand, the upbeat US Manufacturing Purchasing Managers’ Index (PMI) could underpin the US Dollar (USD) and create a headwind for the major pair. The Institute for Supply Management’s (ISM) report on Monday showed that the US Manufacturing PMI exceeded expectations, rising to 52.6 in January from 47.9 in December. This report suggested the US Federal Reserve (Fed) could remain on hold for an extended period.  Pound Sterling FAQs The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on…

---

Filed under: News - @ February 3, 2026 6:27 am