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The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling (GBP) edges lower against the US Dollar (USD) amid political risk in the United Kingdom (UK) and rising expectations of near-term Bank of England (BoE) rate cuts.  UK Prime Minister Keir Starmer faced a significant challenge to his leadership as Scottish Labour leader Anas Sarwar called on him to resign over the fallout from the Jeffrey Epstein scandal. Starmer  continues fighting to shore up his position, saying that “after having fought so hard for the chance to change our country, I’m not prepared to walk away from my mandate and my responsibility to my country or to plunge us into chaos as others have done.” The Bank of England (BoE) is very close to cutting interest rates again after new forecasts showed inflation easing below the 2% target as early as April. Traders raise their bets for a BoE rate reduction, potentially as soon as March. This, in turn, might contribute to the Cable’s downside.  “We continue to expect the next rate cut in March. After that, we think the BOE will deliver a prolonged pause before resuming policy normalization in early 2027 (we see a terminal rate of 3.00% by mid-2027),” said Dani Stoilova, UK and Europe economist at BNP Paribas Markets 360. On the USD’s front, the Retail Sales reading for December is due later on Tuesday. All eyes will be on the delayed jobs report for January on Wednesday. Markets’ consensus forecasts the Nonfarm Payrolls (NFP) to increase by 70,000 in January, with the Unemployment Rate holding at 4.4%. Any signs of weakening in the US labor market and softer inflation could undermine the Greenback and help limit the major pair’s losses.  Pound Sterling FAQs The Pound Sterling (GBP)…

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Filed under: News - @ February 10, 2026 5:34 am