Central Banks Steady as Sterling & Crown Shift on Rate Decisions

The Bank of England decided to keep interest rates unchanged on Thursday, although signals indicate potential rate cuts may follow after the government's budget announcement next month. Sterling initially rose by 0.31% but traded 0.21% higher at $1.3080 following the decision.

Norway's currency, the crown, gained strength after its central bank also held rates steady, with the euro trading at 11.71 and the dollar at 10.16. The decision to maintain the policy rate at 4.0% aligns with analyst expectations, aiming to address inflationary pressures.

In the United States, a retreat in the dollar was observed amid an increasing appetite for riskier assets, with the currency falling against major counterparts as market dynamics shifted. Services sector activity in the U.S. rose, but weak employment figures highlighted ongoing economic challenges.