GBP/USD: Gains capped as BoE stresses no urgency – DBS

Philip Wee at DBS Group Research observes that GBP/USD has struggled to extend its rise, stalling just below 1.36 as Bank of England (BoE) officials signal no urgency to raise rates at the April meeting. Despite stronger-than-expected United Kingdom (UK) Gross Domestic Product (GDP) data, the International Monetary Fund (IMF) has downgraded the UK’s 2026 growth outlook, tempering the Pound’s recovery prospects against the Dollar.

Pound rally stalls under 1.36 level

"GBP/USD has similarly struggled to extend gains, stalling just below 1.36."

"Bank of England Governor Andrew Bailey signalled no urgency to raise rates at the April 30 meeting, while BOE member Alan Taylor warned that markets have overpriced rate hikes."

"Taylor characterised March’s hold decision as a pause within an easing cycle, noting that policy remains restrictive at the current 3.75% bank rate."

"Despite the better-than-expected February GDP growth (0.5% MoM actual vs. the 0.1% consensus), the IMF downgraded the UK’s 2026 growth forecast to 0.8% from 1.3% this week."

"It is still premature to call an end to the EUR and GBP’s recovery."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)