Following the ECB’s hold in January, the latest Fed and Bank of England meetings saw them announce their own (non) decisions on rates.
The expected pivot signalled by the Fed was in dropping its tightening bias by removing the reference to the “extent of any additional policy firming”
Market rate expectations are considerably more conservative for the Bank of England, with a first cut priced in for June and around 100bps of policy easing anticipated by year end.
On currency markets over the past week, the main pairs have seen some volatility, albeit contained within well-defined recent ranges.
