• GBP/USD back below 1.2675 after BoE keeps rates pinned.
• BoE voting split remains unchanged at seven-to-two.
• Softer US data further eroded market sentiment, bolstering Greenback.

GBP/USD slipped lower on Thursday after the Bank of England (BoE) held rates at 5.25%, citing ongoing concerns about the central bank’s ability to sustainably keep inflation at or below the 2.0% target. US data was broadly softer than investors had expected in early American trading, igniting a soft patch of risk aversion which kept the US Dollar bid and Sterling pinned into the low end.

Read more: BoE maintains policy rate at 5.25% as forecast

The BoE was broadly expected to keep rates held in place in June, but a focus on recent services inflation coupled with an ambiguous goal to keep inflation “sustainably” lower has left the Sterling in the lurch. Adding onto this, the BoE also noted a willingness to keep policy restrictive for as long as needed, and highlighted that the UK labor market, while looser than previous, still remains historically tight. The Sterling is down around a third of a percent against the extending US Dollar as Thursday’s market action rolls on.