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GBP/USD trades near 1.3500 as Bank of England vote counts loom

The pair is hovering near 1.3500 with Bank of England policy still hinging on whether the next vote turns from a 6-3 split toward a five-to-four decision.

Reported · Written up by our desk · Major Pairs

GBP/USD was trading near 1.3500 on Tuesday, Aug. 11, moving slightly lower on the session and confined to a narrow range of about 25 pips, according to FXStreet. The newsletter said the move has been hard to tie to domestic catalysts, noting the week lacks major British releases that would explain the level or the subdued trading conditions.

FXStreet attributed the main drivers to scheduled data outside the UK and to the Bank of England debate. It said two of the three releases most capable of moving the rate are American, while the third is a British growth print expected to show slowing, and it pointed to the Bank of England’s July decision to hold Bank Rate at 3.75% by a 6-3 vote.

The outlet said the hawkish bloc has grown across consecutive meetings, moving from a single dissenter in April to two in June and three in July. It added that the next BoE meeting is set for Sept. 17, the day after the Fed, and described the sequencing as similar to the double bill seen on July 29 and July 30.

FXStreet also linked the case for a possible quarter-point hike to energy pressures rather than stronger domestic demand. It cited UK data including June CPI at 2.6% year over year, with core also at 2.6% and services at 3.6%, and it said crude oil support has persisted, while the growth outlook remains a challenge, with consensus Q2 GDP seen slowing to 0.4% on the quarter from 0.6%.

Latest closeWTI crude $83.42 ▲1.6%|GBP/USD 1.351 ▲0.1%

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