Pound Steadies Amid Rate Cut Speculation
The British pound held steady against the dollar after reaching a two-week high. The Bank of England's interest rate decisions are influencing market expectations, leading to potential rate cut speculations by December. Market volatility is expected with upcoming job market and growth data announcements.
The British pound maintained stability on Monday, following a climb to a more than two-week peak against the U.S. dollar. This comes ahead of pivotal job market and economic growth reports due later this week, which carry increased significance in light of the Bank of England's recent narrow decision to reduce interest rates.
The pound traded unchanged at $1.3458 after peaking at $1.3476, the highest since July 25. Last week, the Bank of England cut the Bank Rate by a quarter-point to 4%, amid split opinions within its nine-member Monetary Policy Committee. Four members opted to maintain existing rates.
The BoE has been less aggressive in rate cuts compared to the European Central Bank, opting to reduce rates approximately once per quarter since the onset of its easing cycle last year. Francesco Pesole, an ING FX strategist, suggests that future economic data will play a crucial role in shaping monetary policy outlook following the BoE's latest decision.
(With inputs from agencies.)
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