Forex News: Pound Falls As Traders Speculate BoE Rate Cut

Pound Falls As Traders Speculate BoE Rate Cut Decision

(RTTNews) - The British pound weakened against other major currencies in the European session on Monday, as traders speculate that the Bank of England (BoE) is likely to reduce its interest rate in the next month's monetary policy decision.

Traders speculate that the BoE policymakers is likely to reduce its interest rates by 75 basis points by next June and over 50 basis points by year's end.

The Bank of England is scheduled to announce its monetary policy decision on August 7, 2025.

Data from S&P Global showed that U.K. companies reduced their hiring activity further in June amid uncertainty over the business outlook and budget constraints.

Permanent staff appointments declined at the fastest pace in nearly two years in June and temp billings dropped the most since February, the KPMG/REC Report on Jobs said. Companies pulled back on hiring due to reduced confidence and worries about costs.

European stocks traded lower after U.S. President Donald Trump threatened to impose a 30 percent tariff on European Union goods, raising concerns over a prolonged and deeper economic slowdown.

Media reports suggest that the European Union has prepared a ?21 billion ($24.52 billion) tariff package targeting American goods if trade talks between the two sides collapsed.

In the European trading today, the pound fell to 3-month lows of 0.8672 against the euro and 1.0734 against the Swiss franc, from early highs of 0.8654 and 1.0757, respectively. If the pound extends its downtrend, it is likely to find support around 0.88 against the euro and 1.06 against the franc.

Against the U.S. dollar and the yen, the pound slid to a 3-week low of 1.3451 and a 1-week low of 198.10 from early highs of 1.3505 and 198.83, respectively. On the downside, 1.33 against the greenback and 194.00 against the yen are seen as the next support levels for the pound.

Looking ahead, Canada wholesale sales data for May is due to be released in the New York session.

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