GBP/USD Retreats Toward 1.3395 Despite Bank of England Rate Hike to 4.00%

GBP/USD retreated toward 1.3395 from an eight-week high near 1.3500 after the Bank of England raised its benchmark interest rate by 25 basis points to 4.00%. The decision offered little fresh incentive for sterling traders because the rate hike was already widely anticipated. Meanwhile, Brent crude oil dropped 8.7% to near $93.50 per barrel, potentially easing UK inflation pressures and lowering expectations for further tightening. Market attention has turned to US October nonfarm payrolls, projected to add 65,000 to 70,000 jobs, which could reinforce US dollar strength.