While the BoE is widely anticipated to keep interest rates steady, investors will focus on guidance for the remainder of the year. Currently, financial market participants expect that the BoE will cut interest rates one more time in any of its remaining monetary policy meetings.

Sterling rose against a weakening dollar after the Federal Reserve cut interest rates by 50 basis points, with investors awaiting the outcome of the Bank of England policy meeting on Thursday expected to keep borrowing costs on hold.

According to Scotiabank’s chief FX strategist Shaun Osborne; “A 1/4-point cut is likely to be accompanied by a dovish-leaning policy statement. A 1/2-point cut may see more measured forward-looking messaging.”