A “risk off’ tone Monday saw the Australian Dollar (AUD) fall against the British Pound (GBP) to reach 0.4960 (2.0150) a fresh 2025 low in the wake of fresh US tariff wars extending last week’s declines from the 0.5060 (1.9760) area. The Bank of England (BoE) will meet Thursday night and are widely predicted to cut their interest rate from 4.75% to 4.50% with the vote expected to be fairly unanimous. Markets have prices in 3 further cuts for 2025 but with inflation risks on the high side we may see the central bank signal a 4th cut this year. We may see the Pound lose ground towards the 50-day MA around 0.5025 (1.9900) levels.
Current Level: 1.9992
Resistance: 2.0220
Support: 1.9700
Last Weeks Range: 1.9760- 2.0016