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The Pound Sterling (GBP) collapses against the US Dollar (USD) on Thursday after the Bank of England (BoE) decided to hold rates but opened the door for further easing, in a decision seen as a ‘dovish hold.’ Worse-than-expected US jobs data failed to halt the GBP/USD downfall, trading at 1.3529, down 0.90%. Sterling tumbles after a split BoE decision signaled easing ahead Earlier, the BoE, on a 5-4 vote split, kept the Bank Rate at 3.75%, though some of the comments of the BoE’s Monetary Policy Committee (MPC), despite voting for a pause, provided dovish signals. Governor Andrew Bailey said that there is scope for further easing, but it is not exactly clear when and expects “quite sharp” inflation drop. In its projections, the BoE expects inflation to hit the 2% target in Q1 2028, projected to be at around 1.8%. Regarding economic growth, the GDP in 2026 is projected to rise 0.9%, in 2027 at 1.5%, and in 2028 will hit 1.9%. Wage growth is foreseen to remain steady at 3.25%. After the data traders had fully priced in the first rate cut in April. Ahead of the meeting, money markets saw 72% chance of an interest rate reduction, according to Prime Market Terminal data. Source: Prime Market Terminal Across the pond, a tranche of jobs data increased the odds for a rate cut by the Federal Reserve (Fed). The Challenger, Gray & Christmas job cuts report revealed that companies announced 108.435K layoffs, a 118% increase from a year before. The data showed that hiring intentions contracted 13%. Initial Jobless Claims revealed by the Department of Labor missed estimates of 212K, rose sharply to 231K in the week ending January 31. In the meantime, the Job Openings and Labor Turnover Survey (JOLTS) for December fell, showing that companies are…

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Filed under: News - @ February 5, 2026 4:30 pm