Anna 
In Monday’s London session, the Pound Sterling (GBP) witnessed a modest recovery against the US Dollar. However, the near-term outlook for the GBP/USD pair remains subdued, attributed to escalating tensions in the Middle East and speculation surrounding the Bank of England’s (BoE) interest rate policy.
Market sentiment suggests that the BoE may initiate interest rate cuts earlier than the Federal Reserve (Fed), with expectations of a reduction starting as soon as August. In contrast, the Fed is anticipated to follow suit, albeit from its September meeting.
This week, investors will closely monitor the release of employment and inflation data from the United Kingdom. These fresh economic indicators are expected to provide insights into when the BoE might commence its anticipated rate-cut cycle. Of particular interest will be the wage growth data for the three months ending February, as it remains a significant determinant of the UK’s persistent inflationary pressures.
