Sterling rose in European trade on Thursday against a basket of major rivals, resuming gains after the dollar after a short hiatus, with a positive sentiment in the markets after US President Trumps announcement of a big trade deal later today.

The gains come before the Bank of Englands monetary policy decisions later today, expected to cut interest rates by 25 basis points to 4.25%.

The Price

The GBP/USD rose 0.5% today to $1.3357, with a session-low at $1.3286.

On Wednesday, the pound lost 0.6%, the first loss in three days following the Feds meeting.

Trumps Trade Deal

US President Donald Trump said hell announce a big trade deal with a highly respectable country in a new conference later today, the first of many such deals.

Its likely to be a trade deal with the UK, which itself reached a free trade deal with India last week.

Bank of England

The Bank of England is widely expected to cut interest rates by 25 basis points to 4.25%, the lowest since March 2023.

Governor Andrew Bailey will talk later on the future of the fight with inflation and interest rates.

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