The Bank of England maintained the bank rate at 4.5%, reflecting a cautious outlook on the economy. Consequently, GBP/USD fell towards 1.2950, weighed down by the strength of the US Dollar.
EUR/USD also declined, dropping below 1.0850 amidst a risk-averse market and conservative Federal Reserve policies. Meanwhile, gold prices corrected from a record-high above $3,050 but stabilised above $3,030.
Bitcoin Market Update
Bitcoin hovered around $85,500, easing after a previous rise. US President Trump has urged the Fed to lower interest rates due to the economic impact of tariffs.
Interest rates are holding steady, which hints that policymakers are waiting to see how economic conditions develop before making any changes. There is a level of caution in place, as any shift could ripple through markets in ways not yet fully understood. The response in GBP/USD makes sense given that traders often move capital towards currencies with stronger interest rate expectations. The drop towards 1.2950 suggests that investors see more opportunity in safer bets. We can infer that unless fresh economic data surprises, sterling may struggle to gain momentum in the near term.
The euro has also slipped, falling below 1.0850. A weaker performance here is not happening in isolation—the broader mood among investors shows hesitancy. The Federal Reserve’s preference for staying conservative keeps demand high for the US Dollar, leaving little room for a sharp euro recovery. Unless unexpected inflation data or policy shifts appear soon, it is tough to justify a change in direction.
Gold has come down slightly after reaching above $3,050. That sort of movement is natural after setting a record high. The fact that it has stabilised above $3,030 tells us that underlying demand remains strong, even if it is no longer climbing at the same pace. As long as uncertainty lingers in other markets, gold should keep attracting attention.
Federal Reserve And Political Pressure
Bitcoin has reached a calmer phase, resting around $85,500 after an earlier rise. It is normal for a pullback to happen after a period of gains. Whether more upside follows may depend on external catalysts rather than just technical levels.
Political pressure on monetary policy is now back in focus. Trump has called for lower interest rates, pointing to economic strain from tariffs. That adds another layer of uncertainty for traders watching the Fed. If rate cuts happen, dollar dynamics could shift once more. Until a decision is made, markets may stay reactive rather than proactive.
