British Pound futures erased gains ahead of BOE decision.

Dan Deming of KKM Financial analyzes the recent selling pressure in British Pound futures, which have traded lower in seven of the last eight sessions. After reaching a mid-month peak of 1.355, the pound has staircased lower to give back all of its July gains, returning to the 1.328 opening level. Deming explains that shifting market expectations surrounding Thursday's Bank of England rate decision are driving this downward momentum. While a recent rally in crude oil prices previously sparked thoughts of a potential rate hike, markets are now broadly expecting the central bank to hold rates steady. Traders continue to position defensively as short-term sentiment shifts ahead of the critical policy announcement.