The Bank of England (BOE) met expectations of cutting interest rates by 25 basis points with a majority vote by policymakers.
The latest interest rate at 4.50%, which was lowered from the previous 4.75%, is the third reduction by the BOE since August last year from the long-held 5.25%.
Governor Andrew Bailey made a statement with a cautious tone with a gradual approach to cutting interest rates with concerns that inflation could surge to 3.7% in the third quarter of this year.
In fact, two of the policymakers suggested a larger interest rate cut.
Following the rate announcement, the Pound currency yesterday plunged lower following the initial plunge that had occurred since the European session.
Meanwhile, US dollar currency trading was slow and slightly gloomy in the New York session yesterday as investors remained vigilant about the development of the tariff war issue.
Towards the end of the week, the focus shifts to the US (US) NFP employment data report in the New York session tonight which will provide a clearer picture of the labor sector.
This will also be an important indicator for the Federal Reserve (Fed) to further set their monetary policy before the focus shifts to US inflation data next week.
Also due to be published alongside the NFP data tonight is the Canadian employment report, but the forecast numbers show less than favorable signs.
The Canadian dollar is likely to remain risky to trade in the market in addition to being affected by the tariff issue targeted by President Donald Trump on the country.
