British Pound slips as BoE holds rates, Fed's cautious stance supports Greenback | FXStreet

The British pound weakened as the Bank of England kept rates, while the Federal Reserve's cautious stance supported the dollar. The BoE left the Bank Rate at 3.75% in a 7-2 vote, citing inflation around 3.3% and energy-price volatility tied to Middle East events. GBP/USD hovered near 1.3210 with resistance at 1.3227 and 1.3262. On the U.S. side, the Fed kept rates at 3.50%-3.75% and dropped earlier references to additional rate adjustments, signaling a data-driven approach. The dollar strength supported the stance, while the pound faced headwinds until inflation data clarifies the path ahead. Traders monitor further guidance from both central banks for direction.