---
title: Daily Market View 01-05-2026
description: UK inflation predictions trigger a Sterling rally, as the Bank of England maintains interest rates. Explore market insights and economic forecasts in today's update.
---

[FX News | Caxton Daily Market View ](https://caxton.io/fx-news)

# [Daily Market View 01-05-2026](https://caxton.io/fx-news/daily-market-view-01-05-2026)

 Written by [David Stritch](https://caxton.io/fx-news/author/david-stritch) | May 1, 2026 9:51:58 AM

# Prospect of 6.2% UK inflation triggers Sterling rally

 

GBP-

Just when it seemed like the Pound would be on the receiving end, if anything yesterday, Sterling found away to stage half-percent rallies against its most major peers, mostly on account of the three scenarios the BoE laid out regarding how they see the inflation, employment and growth situations in the UK depending on how the war impacts the economy.

Despite the more dovish than expected vote share and what was, if you remove the above projections, a reasonably neutral statement. I still believe that 3 interest rate hikes this year is beyond the Bank of England, although when this dam of realisation busts, its difficult to say. Scenario C, the most drastic of all that assumes a Gulf war extending into the second half of the year. 

Markets Today

*Please be aware the below rates represent the market rate at 7:30 AM, contact your Caxton dealer on check online for a live quote

## Today's Economic Calendar

**Major Economic Releases (All times in GMT)**

12:00 - Bank of England Interest Rate Decision   
13:15 - European Central Bank Interest Rate Decision 

 

 

 

[View full post](https://caxton.io/fx-news/daily-market-view-01-05-2026)

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