Pound Sterling rose against all major currencies in early trade on Tuesday, driven by a bid in GBP/EUR, after official data showed employment rising and the unemployment rate falling late in the second quarter.
The British Pound might stay under pressure in the near term, but a "hawkish" cut from the Bank of England could help it reclaim its status as an outperformer.
The British Pound is under pressure after the Bank of England Monetary Policy Committee (MPC) voted by a narrow margin to reduce Bank Rate to 5.0% from 5.25%.
The British Pound is weaker across the board as the odds of a Bank of England rate continue a steady rise, with the market now odds-on for a cut to be announced tomorrow.