The GBP/USD currency pair traded fairly calmly on Wednesday, and the UK inflation report had no measurable impact on the pound's movement. Today the Bank of England meets, and we will learn the rate decision and the Monetary Policy Committee vote results.

The EUR/USD currency pair traded quietly for most of Wednesday, moving slowly and without haste. We see nothing surprising in the week's muted price action, since traders were plainly unwilling to open positions ahead of the Federal Reserve's decision.

The GBP/USD currency pair again showed a tendency to decline on Tuesday, but it held back from a larger drop. The US dollar has strengthened quite actively over the past 3–4 days, and during that time the market, as we have already noted, has been pricing in future Federal Reserve tightening — though it has done this, in our memory, several times already.

The EUR/USD currency pair unexpectedly plunged about 60 pips on Monday before the start of the U.S. session, but by Tuesday, market movements had calmed, and the U.S. dollar had effectively completed its three-day rally.

The GBP/USD currency pair also fell on Monday, but much less than EUR/USD. This raises the question: why is the euro falling while the pound is not, when the European Central Bank has already delivered a second round of monetary tightening this year, whereas the Bank of England has not — and the UK seems to be on the edge of disintegration?