candywaysbonanza2megaways| Foreign exchange market report on EBC GROUP platform| The market adjusts its view of interest rate cuts, and the pound has no way to move upwards

With sterling continuing its weak performance on Wednesday, the Bank of England should keep interest rates unchanged at tomorrow's meeting and signal greater certainty that inflation is on the right path.

Traders priced in a 53 basis point cut in UK interest rates this year, equivalent to about two 25 basis point cuts. After data released last month showed that prices slowed less than expected in March, the market initially thought interest rates would be cut only once this year.

Federal Reserve Chairman Colin Powell warned that it will take longer than expected to bring inflation back to target. Lagarde, the European Central Bank, said that price growth in Europe was less driven by demand than in the United States.

Huw Pill, chief economist of the Bank of England, made it clear that the environment for immediate interest rate cuts is not yet ripe. However, due to the economic struggle, the call to cut interest rates is getting louder and louder.

Last month the International Monetary Fund cut its UK economic forecast for the second time in three months, citing high interest rates, low productivity and investment growth.

The agency's estimates are lower than those forecast by the Office of Budget responsibility in March, highlighting the difficult task for Prime Minister Sunak to revive the economy ahead of this year's general election.

The pound has gradually lost momentum since it bottomed out in late April. The 50-day moving average will continue to put pressure on the other side 1Candywaysbonanza2megaways.2300 forms a support.

[foreign exchange quotation broadcast risk reminder and exemption clause on EBC GROUP platform]Candywaysbonanza2megawaysThis material is for general reference only and is not intended to be (and should not be regarded as) reliable financial, investment or other advice.

[risk Tip] according to the relevant regulations on foreign exchange management, the buying and selling of foreign exchange shall be carried out at the trading venues prescribed by banks and other countries. Whoever buys and sells foreign exchange privately, buys and sells foreign exchange in disguise, buys and sells foreign exchange or illegally introduces a relatively large amount of foreign exchange shall be imposed by the foreign exchange control agency according to law; if the case constitutes a crime, he shall be investigated for criminal responsibility according to law.