Anna 
The Pound Sterling (GBP) is experiencing subdued trading, moving within a narrow range during Thursday’s European session, as the market awaits fresh economic triggers for a decisive move. The GBP/USD pair remains quiet as traders look for insights from Bank of England (BoE) policymaker Catherine Mann, who is expected to provide guidance on future interest rates.
The potential bullishness of the GBP depends on the continuation of high-interest rates in the UK compared to its counterparts. High-interest rates tend to attract greater foreign capital inflows. BoE Deputy Governor Sarah Breeden, along with Chief Economist Huw Pill, recently emphasized that the central bank is focusing on the duration for which interest rates need to remain at current levels.
BoE Governor Andrew Bailey also highlighted that the length of time for which higher interest rates will persist depends on upcoming data. The BoE appears to be gradually considering a shift away from ultra-hawkish interest rates. However, the transition to an easier monetary policy by the BoE is expected to take a longer period compared to the Federal Reserve (Fed) and the European Central Bank (ECB) due to notable differences in wage growth momentum.
Expectations for volatility in the Pound Sterling rise as BoE policymaker Catherine Mann is scheduled to speak at 15:00 GMT on Thursday. Mann is anticipated to maintain a hawkish stance, as evidenced by her vote in favor of a 25 basis points interest rate hike in the recent monetary policy meeting on February 1.
