Anna 
In Europe, the GBP/USD pair traded 0.2% lower at 1.2475, ahead of the Bank of England’s rate-setting meeting.
The Bank of England (BOE) is widely expected to keep interest rates unchanged later on Thursday. The main focus will be on whether officials signal a potential rate cut in June, aligning with signals from the European Central Bank (ECB).
A rate cut is fully priced in for August, and last week saw an increase in short positions on sterling to their highest level since January 2023, suggesting potential volatility if post-meeting guidance does not align with market expectations.
Meanwhile, in Europe, the EUR/USD pair traded 0.1% lower at 1.0732, maintaining stability amid a light data calendar.
Analysts at ING noted, “It’s hard to see EUR/USD breaking far from 1.0750, unless the BoE is demonstrably dovish and GBP/USD drags EUR/USD lower with it.”
