While interest rate cuts usually weaken currencies, the British pound (GBP) recently strengthened after a rate reduction by the Bank of England. This counterintuitive trend reveals the importance of market expectations, global economic comparisons, and inflation dynamics in currency movements. Discover the key factors that explain why GBP gained strength and what it means for the forex market.

On September 18, 2024, at 7:00 PM UK time, the Federal Reserve's rate decision will take center stage, with major implications for global financial markets. This pivotal announcement could see the Fed cutting rates by 25 or 50 basis points, or holding rates steady. Each scenario will influence the US Dollar, stock markets, bonds, commodities, and cryptocurrencies in distinct ways. Investors should prepare for potential market volatility as the Fed’s actions and communications will set the tone for economic expectations and investment strategies.