The British Pound Sterling, on Tuesday, August 15, dipped to one-month lows as the dollar’s rebound against a broad basket of currencies pushed investors to execute some short bets against it.
The pound fell 0.2 percent to $1.2936, its lowest since July 20, on track to break below a 50-day moving average.
The pound reached $1.3267 per dollar on Aug. 3 on a brief surge in expectations that the Bank of England could raise interest rates over the next year.
“The political cycle picks up in September and until then sterling is likely to remain sidelined, broadly tracking the dollar and other factors,” said Adam Cole, chief FX strategist at RBC in London.
But the Bank’s latest meeting and minutes quashed much of that talk in the market and a retreat in pricing on rates has weakened the pound since. Sterling has fallen 2.5 percent since then.
Inflation data on Tuesday and wage numbers a day later should be the centrepiece of the week. If inflation rises to 2.7 percent, as expected, it will underline the pain being felt by households whose incomes are not rising as fast.
Sterling was trading 0.14 percent higher at 90.77 pence per euro.
