The Pound (GBP) was mostly rangebound on Tuesday as GBP investors grow reluctant to alter their positions in the currency ahead of the Bank of England’s (BoE) upcoming interest rate decision.

The BoE is widely expected to deliver a 25 basis-point rate cut when it concludes its first policy meeting of the year on Thursday.

However, GBP investors are unsure over what tone the bank will strike in its forward guidance. If the bank adopts a more dovish tone, Sterling could face pressure.

In the run up the to the BoE’s rate decision, in addition to Trump’s evolving stance on tariffs, the Pound US Dollar exchange rate may also be influenced by the latest ISM services PMI.

The latest US services index could provide a boost for the ‘Greenback’ if it reports that activity continued to rise in January.

Any upside in the US Dollar may then be reinforced by the latest US ADP employment report, if it shows that the US labour market strengthened last month.

Meanwhile, the UK’s own services PMI may offer some limited support to the Pound if January’s finalised index outpaces expectations.