Sterling Rises Amid Anticipation of Fed's Policy Meeting
Sterling edged higher as investors await the Federal Reserve's meeting, after news of a US-EU trade deal. The pound rose slightly amid focus on the Federal Open Market Committee decisions and upcoming British economic data. Britain's inflation poses challenges for the Bank of England's future rate cuts.
Sterling experienced a slight increase on Wednesday as financial market participants turned their attention to the upcoming Federal Reserve policy meeting. This followed recent developments regarding a trade agreement between the United States and the European Union.
The value of the US dollar declined as investors redirected their focus to the session's Federal Open Market Committee meeting and anticipated economic data releases. Meanwhile, the pound registered a 0.15% rise, trading at $1.3374 after reaching its lowest level since May 19.
The euro saw a decrease of 0.12%, trading at 86.38 pence per pound — its lowest since July 11. Investor sentiment remains divided on sterling, with ongoing debates about the Bank of England's pace of potential rate cuts despite persistent inflation concerns. Soft economic data complicates decisions on monetary policy adjustments.
(With inputs from agencies.)
ALSO READ
Before 2014 inflation rate used to be in double digit, it is now around 2 per cent; inflation is low and growth rate high: PM Modi.
Inflation Holds Steady at 2.7% as Govt Touts Economic Stability, Warns on Council Rates
Raghuram Rajan: Repo Rate Cuts Not a 'Magic Bullet' for Investments
FTSE 100 Gains as Mining Stocks Surge Amid Bank of England Speculation
RBI's Inflation Battle: A Path to Economic Stability
Google News