The pound fell today from a daily high of 1.3144 against the US dollar a day before the BoE meeting, which is widely expected to raise rates for the second time since the global financial crisis. GBPUSD is currently trading near the 1.31 level and is expected to see further downside especially if the rate is raised as expected.
Data in Britain recently showed the economy recovering from a slowdown in the first quarter of the year, but is still struggling under pressure from the uncertainty surrounding the Brexit talks.
Also, EUR suffered today against the US Dollar as fears of a growing trade dispute between the US and China boosted the dollar, as well as manufacturing data in the Eurozone during July that prompted investors to be cautious.
Markets await the Fed meeting this evening, which is widely expected to keep interest rates unchanged, but it will confirm a gradual rate hike path despite criticism from US President Donald Trump.
