Pound falls as BoE Hawk talks up rate cuts

Summary:

Renowned BoE Hawk Saunders hints at rate cut
Pound set for weekly loss
GBPUSD dips below $1.23 to trade near 3-week low

It’s shaping up to be a bad week for the pound with the currency falling across the board and dropping to its lowest level in almost 3 weeks against the US dollar as the rate dips back below the $1.23 handle. The return of parliament has perhaps caused a little more caution in the markets as investors are starting to feel that the bounce in the pound that we’ve seen in the past month is based on an overly optimistic assessment of the current risks.

The pound is trading lower on the week with the largest loss seen against the Kiwi and the Loonie. Source: xStation

The latest declines come after Michael Saunders stated the Bank of England may lower interest rates due to Brexit uncertainty. Selected comments are as follows:

Rates could go either way after Brexit
Brexit uncertainties are a slow puncture for the UK economy
Deferring monetary policy changes until after Brexit could lead to inappropriate policy
BoE's next move could 'quite plausibly' be a cut even if no-deal Brexit is avoided

Quite why this is moving the markets is unknown to be honest with the biggest surprise being that this is seen as a surprise at all. Economic data has been poor on the whole and while it looks like a technical recession will be avoided with a rebound to GDP growth probable in the 3rd quarter, the levels of activity seen in other metrics such as retail sales and PMIs suggest that the economy is still barely keeping its head above water. Throw in the almost universally acknowledged continued levels of heightened uncertainty on the political front, with markedly divergent Brexit paths still possible and it is actually pretty shocking that a comment that a rate cut is “quite plausible” has caused such a response.

The GBPUSD rate is on track for a 3rd consecutive day of losses with price pulling back into the Ichimoku cloud on D1. The low of the cloud around 1.2230 roughly coincides with prior support and could be a level to keep an eye on if price falls further. Source: xStation

8 April 2026, 9:47 AM

War-related shifts in the Forex market: USD plummets 💥; AUD, NZD and the CHF rebound 🚀

8 April 2026, 9:23 AM

NZDUSD: hawkish RBNZ decision and TACO trade support the NZD 🚀

7 April 2026, 4:35 PM

NY Fed survey signals inflation spike in the US🗽EURUSD at 1.157

6 April 2026, 9:07 AM

Economic calendar📌 EURUSD awaits US ISM Services reading

Forex

Cookie name	Description
SERVERID
userBranchSymbol	Expiration date 1 day
test_cookie	Expiration date 1 hour
adobe_unique_id	Expiration date 364 days
__hssc	Expiration date 1 hour
SESSID	Expiration date 1 day
__cf_bm	Expiration date 1 hour
intercom-id-iojaybix	Expiration date 270 days
intercom-session-iojaybix	Expiration date 6 days
xtbCookiesSettings	Expiration date 364 days
TS5b68a4e1027
countryIsoCode
xtbLanguageSettings	Expiration date 364 days
userPreviousBranchSymbol	Expiration date 364 days
intercom-device-id-iojaybix	Expiration date 270 days
__cfruid
_cfuvid

Cookie name	Description
_gid	Expiration date 1 day
_gat_UA-98728395-1	Expiration date 1 hour
_gat_UA-121192761-1	Expiration date 1 hour
_gcl_au	Expiration date 89 days
_ga_CBPL72L2EC	Expiration date 729 days
_ga	Expiration date 729 days
__hstc	Expiration date 179 days
__hssrc
_vwo_uuid_v2	Expiration date 365 days
_ga_TC79BEJ20L	Expiration date 729 days
_vwo_uuid	Expiration date 365 days
_vwo_ds	Expiration date 29 days
_vwo_sn	Expiration date 1 hour
_vis_opt_s	Expiration date 99 days
_vis_opt_test_cookie
af_id	Expiration date 394 days
afUserId	Expiration date 730 days
AF_SYNC	Expiration date 6 days
AnalyticsSyncHistory	Expiration date 29 days

Cookie name	Description
MUID	Expiration date 389 days
_omappvp	Expiration date 3998 days
_omappvs	Expiration date 1 hour
_uetsid	Expiration date 1 day
_uetvid	Expiration date 389 days
_fbp	Expiration date 89 days
fr	Expiration date 89 days
_ttp	Expiration date 89 days
_tt_enable_cookie	Expiration date 89 days
hubspotutk	Expiration date 179 days
IDE	Expiration date 389 days
YSC
VISITOR_INFO1_LIVE	Expiration date 179 days
li_sugr	Expiration date 89 days
guest_id_marketing	Expiration date 729 days
guest_id_ads	Expiration date 729 days
guest_id	Expiration date 729 days
muc_ads	Expiration date 729 days
VISITOR_PRIVACY_METADATA	Expiration date 179 days
MSPTC	Expiration date 389 days

Cookie name	Description
bcookie	Expiration date 364 days
lidc	Expiration date 1 day
UserMatchHistory	Expiration date 29 days
bscookie	Expiration date 364 days
li_gc	Expiration date 179 days
personalization_id	Expiration date 729 days