"A combination of budget jitters and rising bets in favour of a December rate cut from the Bank of England have kept sterling firmly on the back foot so far this week, with the pound slumping towards the 1.31 level on the dollar yesterday, and to its lowest level on the euro since May 2023."
"is not a foregone conclusion, far from it. There were strongly differing views about how to proceed in December."
"The dollar found more support yesterday on the tail effect of Fed chair Powell's hawkish press conference and, more marginally, the US-China trade deal."
The pound traded at $1.314 against the dollar as investors weighed geopolitical risks and global growth prospects. Sterling faced pressure from budget jitters and rising expectations of a Bank of England rate cut in December, pushing it toward $1.31 and to its weakest level against the euro since May 2023. The US Federal Reserve reduced interest rates by 25 basis points to a 3.75%-4.0% target range while signalling that a further December cut is not guaranteed amid strongly differing views. The dollar gained support after a hawkish Fed chair press conference and modestly from US-China trade developments, reinforcing dollar strength.
Read at London Business News | Londonlovesbusiness.com
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