The Pound Sterling (GBP) is navigating within the confines of Friday’s trading range as investors return to the market following the festive week. The GBP/USD pair is poised for potential movement post the release of the S&P Global Manufacturing PMI for December. However, a subdued performance is expected in the factory data, given the lingering festive mood that has kept workers on holiday.
Market attention is shifting toward speculation on the Bank of England’s (BoE) potential timing for interest rate cuts, which could inject significant volatility into the Pound Sterling. Amid concerns of a technical recession in the United Kingdom, investors anticipate possible rate cuts starting in May. While BoE policymakers have refrained from endorsing rate cuts thus far, the looming prospect of a recession may prompt discussions about reducing interest rates.