FX markets

Daily Market View 06-02-2026

Listen to this daily briefing

1:39

Pound Rises After Significant Losses Following BoE Votes

1 Minute Market Rundown

The Bank of England and European Central Bank keep rates steady, but dovish MPC vote split has weakened the Pound.
Monetary Policy Committee members vote 5-4 (hold-cut) with 7-2 having been the expectation.
The move suggests a possible cut to UK base rate in March and a more dovish outlook generally.

GBP-

If you were one of the cherished who read my FX street article GBP/EUR rich heading into BoE, you would have known to be careful holding onto GBP trades ahead of the BoE yesterday. For GBPEUR to be hitting a 6 month high in a pretty arid news environment was strange enough, but it was built entirely on the assumption of a strongly hawkish BoE.

Screenshot 2026-02-06 081540

Anything less than this would have ruined GBP's recent strength, although I admit, even I didn't expect just how badly this bet would go. MPC members voted 5-4 to hold rates steady, much tighter than the 7-2 expected, only for Bailey to then come out and suggest cuts coming much quicker than expected.

This has all precipitated a near 1% decline in GBPEUR and a similar drop in GBPUSD, with GBP only just improving as the double shock of the PM being buffeted by the Mandelson revelations and the BoE starts to cool.

Markets Today

*Please be aware the below rates represent the market rate at 8:00 AM, contact your Caxton dealer or check online for a live quote.

Today's Economic Calendar

Major Economic Releases (All times in GMT)

No major releases.

Book Currency Workshop

Learn how market shifts impact your FX need or your business, directly from our analyst in a free consultation by good old fashioned phone call.

Book now

Sign up for the monthly outlook

The currency markets never sit still. Neither should your plans. Join 45 minutes of practical, jargon-free analysis on what’s moving the markets—and what it means for you or your business.