Anna 
In Tuesday’s European session, the Pound Sterling (GBP) is exhibiting sideways movement, influenced by a slightly downbeat market sentiment as traders anticipate the release of the Federal Reserve Open Market Committee (FOMC) minutes, offering insights into the outlook on interest rates. Additionally, Bank of England (BoE) Governor Andrew Bailey and other policymakers are scheduled to testify before the United Kingdom Parliament today, providing guidance on inflation and interest rates.
Investors are expecting a continuation of a hawkish stance from Andrew Bailey and fellow policymakers. The market is less certain about achieving price stability sustainably. Robust wage growth, resilient service inflation, and strong household spending indicate a persistent inflation outlook, allowing the BoE to adopt a cautious approach before considering rate cuts. A hawkish tone from BoE policymakers could enhance the appeal of the Pound Sterling.
Throughout the week, the GBP/USD pair’s trajectory will be influenced by the preliminary S&P Global Manufacturing and Services PMI for February, set to be published on Thursday. Traders will closely monitor these events for any shifts in market sentiment and potential impacts on the Pound Sterling.
