GBP/USD Pulls Back Toward Mid-13350s as Investors Await BoE Rate Decision and US Macro Data

The GBP/USD currency pair retreated from its weekly high near the 1.3385 to 1.3390 region, slipping back toward the mid-1.3350s during the European session as a resurgent US Dollar regained positive traction. This renewed greenback demand is being fueled by shifting inflationary dynamics tied to volatile oil prices that keep Federal Reserve rate hike expectations firmly active, alongside rising geopolitical tensions involving the US and Iran that amplify safe-haven appeal. Despite this downward pressure, the pair's broader downside remains somewhat cushioned as market participants exercise caution, choosing to stay on the sidelines ahead of the crucial upcoming Bank of England rate decision, a speech by Governor Andrew Bailey, and important incoming United States macroeconomic indicators.

FTSE 100 to open 80.3 points lower, 0.7%, at 10,828.11 on Thursday. The index of London large-caps closed up 37.39 points, 0.3%, at 10,908.41 on Wednesday.