British Pound futures rallied on hawkish BoE pivot.

British Pound futures saw a significant rally on Thursday, climbing toward 1.3460 before settling at 1.3440. The move was supported by a weaker U.S. dollar and a technical break above the 100-day moving average, a level not seen since March 12. The primary catalyst was a hawkish pivot from the Bank of England, which followed Wednesday's similar tone from the U.S. Federal Reserve. Markets are now pricing in potential interest rate hikes for 2026, shifting away from previous expectations of rate cuts. Policymakers are increasingly focused on inflationary pressures tied to Middle East tensions and elevated energy prices. Volatility remains on an upward trend, as measured by the CVOL index, while traders continue to seek clarity on the global rate path and its impact on economic growth.