World Economy

Sterling Falls to 1-Month Low

Sterling Falls  to 1-Month LowSterling Falls  to 1-Month Low

Sterling slipped to one-month lows on Tuesday as the dollar’s rebound against a broad basket of currencies prompted investors to execute some short bets against it, Reuters reported. “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. The pound fell 0.2% to $1.293, its lowest since July 20, on track to break below a 50-day moving average. But the Bank of England’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% since then. Inflation data on Tuesday and wage numbers a day later should be the centerpiece of the week. If inflation rises to 2.7%, as expected, it will underline the pain being felt by households whose incomes are not rising as fast. Sterling was trading 0.14% higher at 90.77 pence per euro.


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