Bank of England's Impact on the British Pound

As we head into Q3 2024, the British pound faces downward pressure mainly due to anticipated interest rate cuts by the Bank of England, likely starting in mid-September, and political uncertainty surrounding the upcoming general election slated for July 4th. A potential win by the Labour party could lead to changes in fiscal policies, impacting sterling and associated assets. Economically, the UK shows signs of improvement with inflation at target levels and growth picking up, yet currency pairs like GBP/USD ("cable") and GBP/EUR might see a decline due to these internal and external factors.