Sterling fell in European trade on Wednesday against a basket of major rivals, extending losses for the second day against the dollar and moving off one-week high as odds for US interest rate cuts in early 2024 subside.
Sterling is currently under pressure ahead of Bank of England Governor Andrew Bailey's testimony later today ahead of the UK Parliament about financial stability in the country.
GBP/USD
GBP/USD fell 0.2% to 1.2686, with a session-high at 1.2718, after falling 0.3% on Tuesday, the first loss in five days off one-week high at 1.2771.
The dollar and pound competed for the title of best performing major currency in the first week of 2024 as bets on early interest rate hikes by the Fed and BOE recede.
Bailey
Later today, BOE Governor Andrew Bailey will testify ahead of the Parliament on UK financial stability, and could hint at the future path of monetary policies.
Bailey recently said there's still a long road before controlling inflation, adding it's still too early to start guessing about interest rate cuts.
The Dollar
The dollar index rose 0.1% on Wednesday, maintaining profits for the second session against a basket of major rivals.
The gains come following data and bullish remarks by Fed officials, which hurt the odds of interest rate cuts by the Fed in March.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
