GBP/USD: Sterling Extends Rise to $1.33 as Traders Bid Up Ahead of BoE Rate Decision

Monday’s pop was another leg up following Friday’s rise after US job growth sank things everywhere, dollar included.

💷 Pound Perks Up Into the BoE Week

• The GBPUSD pair was rising for a second session early on Monday, trading near $1.33 — up 1.2% from Friday’s lows — as traders piled in ahead of Thursday’s Bank of England rate call.
• Friday’s rebound broke a six-day losing streak, sparked by soft US jobs data that hit the dollar hard and reignited the case for a September Fed cut after July’s meeting wrapped up with a hold.
• Cable’s momentum comes despite broader bearishness — the exchange rate is still down 3.8% from its July peak of $1.3790.

🌟 BoE Rate Cut Incoming?

• On Thursday, the Bank of England is widely expected to cut interest rates by 25 basis points, trimming the benchmark rate from 4.25% to 4%.
• The call comes as UK inflation continues to haunt consumers and growth slows — putting pressure on the BoE to move before the economy gets choked further.
• Traders will be watching the vote split and forward guidance closely — a dovish tone could cap sterling’s rally.

💵 Weak Dollar Adds a Tailwind

• The dollar took a hit Friday after July’s nonfarm payrolls came in at just 73,000 jobs — well below expectations — with a brutal 258,000 in downward revisions for May and June.
• Rate cut bets jumped, with markets now pricing in an 81% chance of a September Fed cut. The dollar index fell for its worst day since April.
• The pound-dollar continues to benefit from broad dollar weakness — but sustained upside could need help from the BoE not sounding too dovish.