The Pound Sterling (GBP) is a moderate outperformer on the session, helped by the prospect of the BoE taking a pass at this week’s rate decision and holding off on easing rates again until later in the year, Scotiabank’s Chief FX Strategist Shaun Osborne notes. The Pound Sterling surges to near 1.3200 against the US Dollar amid upbeat market sentiment. Investors expect the BoE to leave interest rates unchanged at 5% on Thursday. Traders remain divided over the size of the Fed’s likely interest-rate cut. The Pound Sterling (GBP) jumps to near 1.3200 against the US Dollar in Monday’s North American session. The GBP/USD pair gains as investors expect that the BoE’s policy-easing cycle will be less aggressive than that of the Fed. The Fed is almost certain to begin cutting interest rates on Wednesday. However, traders remain split about whether the rate cut size will be of 25 or 50 basis points (bps). According to the CME FedWatch tool, the probability of the Fed reducing interest rates by 50 bps to 4.75%-5.00% in September has increased sharply to 61% from 30% a week ago.