According to Jinshi Data, Mitsubishi UFJ analyst Lee Hardman said before the Bank of England's interest rate meeting this week that the pound tends to weaken after recent central bank meetings, but the depreciation this time should be limited.
Hardman pointed out in the report that another rate cut by the Bank of England this week would theoretically trigger a massive sell-off in the pound, but the actual trend is unlikely. He believes that consecutive rate cuts in November and December are more likely, which will have a greater impact on the performance of the pound later this year.
Hardman said that with the Bank of England expected to cut interest rates more slowly than the Federal Reserve, any pullback in sterling against the dollar this week could be a short-term buying opportunity.