GBP/USD STABLE AS MARKETS WAIT FOR INTEREST RATE CUT

A quarter-point cut in UK interest rates by the Bank of England on March 26 is now fully priced in to the markets, benefiting the FTSE 100 index of leading London-listed stocks but leaving GBPUSD little changed. According to the overnight index swaps market, there is now a 100% likelihood of a reduction in Bank Rate to 0.5% from the current 0.75% in the wake of the Federal Reserve’s emergency cut in the Federal Funds rate Tuesday to counter the economic impact of the coronavirus.