GBPUSD Braces for Volatility as BoE and US PCE Converge

Sterling remains under pressure near 1.3480 as markets anticipate a high-stakes 90-minute window featuring the Bank of England’s rate decision and a deluge of top-tier US economic data. While the BoE is expected to hold rates at 3.75%, the focus remains on whether hawkish dissenters can support the Pound against a backdrop of UK stagflation risks and a resilient US Dollar. The subsequent release of US PCE inflation and Q1 GDP figures will likely dictate the pair's direction; upside surprises in US data could solidify the Greenback’s dominance and force a break below key support at 1.3460, whereas any signs of cooling inflation might offer a brief reprieve within the current 1.33–1.36 trading range.

The FTSE 100 index opened up 25.72 points, 0.3%, at 10,238.83. The FTSE 250 was up 8.57 points, marginally higher, at 22,209.44, and the AIM all-share was up 2.05 points, 0.3%, at 790.48. The Cboe UK 100 was up 0.4% at 1,020.91, the Cboe UK 250 was up 0.1% at 19,303.62, and the Cboe small companies was up 0.3% at 18,032.84.