Pound Dips Below 1.33 as UK CPI Miss Bolsters BoE Cut Bets

Sterling had already been under pressure after Federal Reserve Chair Jerome Powell's press conference Wednesday. The pair fell sharply, touching a fresh low at 1.3300. That level, along with the 1.3300–1.3330 zone, has capped the pound's decline for more than a month. If that band turns into resistance, the next leg lower targets 1.3180–1.3200. A sustained move above 1.3330 would break the bearish setup. The GBP/USD profile shows the level has held as support since mid-February.

Against the franc, the pound held near 1.0600, consolidating in a 1.0600–1.0650 range. A break above 1.0650 would open a retest of the recent high at 1.0700. A break below 1.0600 points to a deeper corrective move.

The SNB decision is due at 9:30 a.m. London time. The central bank is expected to hold its policy rate at 0%. Markets will watch for any shift in language around the franc's strength and inflation, given the SNB's history of intervening to cap the currency. A surprise cut would hit the franc and lift GBP/CHF; a hold with cautious guidance would keep the pair range-bound. The SNB holds at 0% decision from December shows how the bank has framed energy-driven inflation as temporary.

For the pound, the BoE's statement will either confirm the market's dovish repricing or push back against it. The inflation print has already tilted expectations. The BoE announces its decision at 12:00 London time. The SNB decision is at 9:30 a.m.

forex market analysis continues to focus on rate differentials as the primary driver for sterling in the session ahead.