After Bank of England Governor, Mark Carney said on Thursday that UK interest rates will likely be cut in coming months, the pound dropped in value immediately.
But it seems to have bounced back to the levels similar to before that statement was released (GBP/USD was about 1.34 before the BoE statement and it's 1.33 now).
I would have thought the drop would have been more drastic. Have the markets really priced the impending interest rate cut into the current GBP rate?
If not, why? and when is that likely to happen?