Monex Europe Analyst: UK Pound Remains Fragile Amid Political and Economic Uncertainty

On April 29, Monex Europe analysts noted that despite the UK Parliament's House of Commons voting against referring Prime Minister Starmer for an ethics investigation, the British pound remains vulnerable. According to Jin10, the analysts highlighted in a report that the Bank of England is likely to keep interest rates unchanged on Thursday, emphasizing that the current energy price shock may be temporary, which could dampen expectations for aggressive rate hikes. Prior to this, the U.S. Federal Reserve is expected to announce its rate decision at 2 a.m. Beijing time on Thursday, likely maintaining rates and stressing patience for future actions, which may support the U.S. dollar. Meanwhile, geopolitical headlines and poor risk sentiment are expected to continue weighing on the pound.