Pound Weakens as BoE’s Mann Welcomes Soft Inflation; GBP/USD Slump Hits Day 4

The EUR/GBP pair maintained its upward trajectory toward the 0.8750 level as the British Pound faced renewed selling pressure. In a notable shift, BoE policymaker Catherine Mann, typically known for her hawkish stance, praised the recent cooling of UK inflation data. This endorsement has intensified market bets that the Bank of England may pivot toward interest rate cuts sooner than previously anticipated. The Pound's broader weakness was also evident as it extended its losing streak against the US Dollar for a fourth consecutive trading day on Thursday. Investors are now closely monitoring whether other BoE officials will echo Mann’s sentiment, which could further weigh on the currency's outlook. Consequently, the divergence in monetary policy expectations between the BoE and the ECB remains a primary driver for the pair's current momentum.

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