The Pound Sterling rebounds against the US Dollar ahead of the monetary policy announcement by the BoE.

Not surprisingly, the Fed cut rates by 25 basis points at yesterday’s meeting.

Markets are responding to the U.S. central bank rate decision, which saw the Federal Open Market Committee implement a widely anticipated 25 basis point rate cut on Wednesday.

We interpret yesterday’s Fed decision as a net negative for the dollar, and think that some 'sell the fact' and positioning readjustment have exacerbated the dollar rally during and after the presser.

The Australian Dollar has been losing ground over most of this week, but has jumped higher as the London session got underway today.

The Federal Reserve cut interest rates by a quarter of a percentage point, its first reduction in nine months, prompted by signs of a weakening job market despite persistent inflation above the 2% target.