Investing.com - Following a US holiday, currency markets saw limited fluctuations on Thursday as investors awaited not just the BoE's decision, but also those from central banks in Switzerland and Norway.
After a minor increase in the previous session, the pound was trading at $1.2719. The euro saw a slight 0.03% rise to $1.0747.
The US dollar experienced a 0.1% dip against the yen, trading at 157.99, but remained close to its over one-month low of 158.255 per dollar from the previous week. Against a basket of currencies, the greenback was virtually unchanged at 105.23, a considerable drop from last week's one-month high.
The BoE is widely anticipated to maintain its current rates during Thursday's announcement, with focus shifting to any hints regarding the commencement of an easing cycle.
Despite British inflation returning to its 2% target in May for the first time in almost three years, the details of the report suggest underlying price pressures persist, effectively eliminating the possibility of an early rate cut.
The Swiss National Bank (SNB) is expected to cut its key policy rate by 25 basis points for the second consecutive meeting. The recent strengthening of the Swiss franc and benign domestic inflation contribute to the argument for more relaxed monetary conditions.
The Swiss franc was trading at 0.8840 per dollar, close to a three-month high. Against the euro, the Swiss franc remained near a four-month high of 0.94785, as political unrest in France and the broader European region continues to weigh on the common currency.
Elsewhere, the Australian dollar and New Zealand dollar held steady at $0.6673 and $0.6131 respectively. Despite data indicating a faster-than-expected growth in New Zealand's economy in the first quarter, the figures did little to shift market expectations regarding the country's rate outlook.