Pound softens before UK pivotal economic indicators

The British pound slipped below $1.29, marking a three-month low, as a stronger dollar weighed on the currency amid expectations that inflationary pressures under Donald Trump’s policies could constrain the Fed’s ability to cut rates.

Pound softens before UK pivotal economic indicators

In the UK, the Bank of England enacted its second 25bps rate cut this year last week and signaled a cautious stance on additional cuts. Policymakers highlighted the importance of a restrictive approach, preferring gradual easing over rapid adjustments.

BoE to further cut rates

Markets anticipate two more quarter-point cuts from the BoE by late next year, with odds near 50% for an additional rate cut. This week, key UK economic indicators, including Q3 GDP growth, unemployment, and wage data, are expected and could influence the BoE's outlook.