But in particular, the pound is dragged lower with the focus switching to the BOE later today. I shared some thoughts on that earlier in the week here.

The market move yesterday was to sell the dollar as Fed chair Powell ruled out a 75 bps rate hike for the time being in subsequent meetings. But is that really a signal of peak hawkishness by the Fed? That remains up for debate. For now, dollar bulls aren't throwing in the towel yet; more so as Treasury yields are seeing a strong rebound today.

GBPUSD H1 05-05

In the case of cable, we are seeing price fall back to a low of 1.2520 - down 100 pips on the day now. The drop sees sellers push past the 100-hour moving average (red line) to seize back near-term control. That will put pressure on the 1.2500 mark going into the BOE and the weekly close will be one to watch out for tomorrow.