empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
08.05.2025 09:21 AM
The Bank of England Is Ready to Cut Rates
Open trading account Open demo account

The Bank of England is expected to cut interest rates by a quarter of a percentage point today and signal that another reduction is likely in June. This could potentially put the central bank on track for its first back-to-back rate cuts since 2009, as the U.S. trade war clouds growth prospects. The British pound, as seen on the chart, is reacting quite painfully to the development.

This image is no longer relevant

Economists anticipate that U.K. policymakers will reduce the base rate from 4.5% to 4.25%, and at least one of the nine members of the Monetary Policy Committee may vote for a half-point cut. Futures markets are also pricing in a quarter-point cut and see strong odds for another reduction at next month's meeting.

It's worth recalling that the Bank of England cut rates three times last year starting in August and has held them steady since February, out of concern over Trump's tariff policies and a surge in inflation. However, given that prices have been falling steadily, the central bank likely decided that it's better to support the economy now than wait for an uncertain reaction to Trump's trade war later.

This decision will certainly affect the pound, which is likely to show some short-term volatility. Moreover, it could encourage other central banks to take similar steps to support their economies amid growing global uncertainty. Still, it's important to understand that a rate cut is not a cure-all. Its effectiveness largely depends on businesses' willingness to invest and consumers' readiness to spend. If the economic outlook remains unclear, the rate cut may not be sufficient to spur growth.

Even though today's easing decision by the Bank of England is expected to be unanimous, some members may vote for a more aggressive cut. This would signal strong support for the dovish stance that has been building within the bank. Swati Dhingra, the most dovish member of the Bank of England, and Alan Taylor along with Catherine Mann, had previously voted for an unusually large half-point cut, but in recent meetings joined the majority in keeping rates unchanged.

As for forward guidance, the Bank of England hasn't changed its forecasts since February, when it told investors to expect gradual and cautious rate cuts. The word "cautious" was added to allow the committee time to assess the impact of Trump's trade policy. If it is removed from today's projections, it would signal that the balance of risks has shifted from inflation toward slower growth—another sign that easing is likely to continue.

This would clearly be a bearish signal for the British pound and its longer-term bullish outlook.

Technical Outlook for GBP/USD:

Buyers of the pound need to reclaim the nearest resistance at 1.3365. Only this will allow them to target 1.3399, above which it will be quite difficult to break out. The ultimate upside target is the 1.3437 level. If the pair falls, bears will attempt to take control at 1.3285. If successful, a break of this range will deal a serious blow to the bulls and push GBP/USD toward a low of 1.3260, with a possible move to 1.3235.

Technical Outlook for EUR/USD:

Buyers now need to focus on reclaiming the 1.1340 level. Only then will they be able to aim for a test of 1.1380. From there, it could reach 1.1420, but doing so without support from major players will be quite difficult. The furthest upward target is 1.1450. If the instrument declines, I expect serious buying activity to appear only around the 1.1305 level. If not, it would be better to wait for a retest of the 1.1270 low or open long positions from 1.1230.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Forecast
USD/JPY: Simple Trading Tips for Beginner Traders on June 4th (U.S. Session) Trade Review and Tips for Trading the Japanese Yen The price test at 144.01 in the first half of the day occurred when the MACD indicator had just started moving
Jakub Novak
14:30 2025-06-04 +02:00
1030
Forecast
GBP/USD: Simple Trading Tips for Beginner Traders on June 4th (U.S. Session) Trade Review and Tips for Trading the British Pound The price test at 1.3526 in the first half of the day occurred when the MACD indicator had just started moving
Jakub Novak
14:27 2025-06-04 +02:00
1165
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Is This the Right Time for Christine Lagarde to Leave Her Post?

While the euro shows no intention of yielding to the U.S. dollar, Christine Lagarde is about to face criticism over her intention to continue leading the European Central Bank
Jakub Novak 13:35 2025-06-04 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair remains in a sideways consolidation near its lowest levels since October 2024. Market participants are awaiting the Bank of Canada's interest rate decision, which will be announced
Irina Yanina 09:57 2025-06-04 UTC+2

The Stock Market Believes Trump's Tariff Game Won't Have a Major Impact (Growth in #NDX and #SPX CFDs May Continue)

After a sharp, almost catastrophic drop in March and April, the major U.S. stock indices recovered in May, fully offsetting the decline. Confidence is growing among market participants that this
Pati Gani 09:53 2025-06-04 UTC+2

The Market Is Playing a Dangerous Game

Is the market only hearing what it wants to hear? Or is it simply playing the "buy the dip" game? According to Nomura, buying the S&P 500 five days after
Marek Petkovich 09:27 2025-06-04 UTC+2

What to Pay Attention to on June 4? A Breakdown of Fundamental Events for Beginners

There are not many macroeconomic reports scheduled for Wednesday. Of course, we should note the services sector business activity indices for Germany, the UK, the EU, and the US. However
Paolo Greco 07:27 2025-06-04 UTC+2

GBP/USD Overview – June 4: Trump Is Only Interested in the Big Fish

The GBP/USD currency pair traded lower on Tuesday, but the decline was weak, just like the volatility. Just look at the most recent stretch of the GBP/USD movement
Paolo Greco 03:41 2025-06-04 UTC+2

EUR/USD Overview – June 4: Words, Words... Where Are the Actions?

The EUR/USD currency pair traded relatively calmly throughout Tuesday, and the U.S. dollar even managed to gain slightly. However, we wouldn't pay much attention to a dollar rise
Paolo Greco 03:41 2025-06-04 UTC+2

The U.S. Economy Will Suffer More Than Others from Tariffs

Donald Trump is jeopardizing his own economy. This was the conclusion reached by the G-20 countries at their recent summit. According to summit participants, the discussions focused on the trade
Chin Zhao 00:28 2025-06-04 UTC+2

EUR/USD. Failed Assault on the 1.14 Level: Bears Retreat but Do Not Surrender

Buyers of EUR/USD started the trading week vigorously, testing the resistance level at 1.1450 (the upper line of the Bollinger Bands indicator on the daily chart) and updating a six-week
Irina Manzenko 00:27 2025-06-04 UTC+2

Euro: Trouble Has Arrived – Open the Gates!

Trouble came from where it was least expected. Frustrated by its coalition partners' refusal to support its immigration control plans, the Freedom Party dismantled the Dutch government. The country will
Marek Petkovich 00:27 2025-06-04 UTC+2

Top analytics

Relevance up to 23:00 2025-06-04 UTC--4
EUR/USD Forecast for June 4, 2025
05:21 2025-06-04
Technical analysis
Relevance up to 20:00 2025-06-04 UTC--4
Trading Recommendations and Analysis for GBP/USD on June 4: The Pound Doesn't Retreat Far
03:41 2025-06-04
Trading plan
Relevance up to 02:00 2025-06-05 UTC--4
EUR/USD: Simple Trading Tips for Beginner Traders on June 4. Review of Yesterday's Forex Trades
09:05 2025-06-04
Forecast
Relevance up to 01:00 2025-06-05 UTC--4
Intraday Strategies for Beginner Traders on June 4
07:58 2025-06-04
Forecast
Relevance up to 02:00 2025-06-05 UTC--4
USD/JPY: Simple Trading Tips for Beginner Traders on June 4. Review of Yesterday's Forex Trades
09:06 2025-06-04
Forecast
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.