British Pound Gains as Focus Shifts to Bank of England Announcement

The British pound rose against the dollar, driven by a weak U.S. jobs report and anticipation of the Bank of England's policy announcement. Despite recent losses, experts predict varied outcomes for the pound, with potential rate cuts and quantitative tightening impacts under scrutiny.

The British pound showed positive momentum against the U.S. dollar on Monday, following an uptick driven by a disappointing U.S. jobs report. Investors are keenly observing the Bank of England's imminent policy announcement, with expectations of interest rate adjustments.

Trading at $1.3306, the pound registered a modest 0.2% increase after a more substantial 0.6% gain the previous Friday. However, fears concerning the UK's economic fragility have led to a significant decline last month. Financial specialists, including Kamal Sharma of Bank of America, see potential stabilization against the euro by year's end.

Focus remains on Thursday's BoE policy statement, where market players already price in a chance of a rate cut. Chris Turner of ING suggests potential surprises in quantitative easing strategies could strengthen sterling's position.

(With inputs from agencies.)