On Friday the pound held steady against the dollar trading at $1.314 which comes as investors contemplate the geopolitical and economic growth.
Matthew Ryan, head of market strategy at global financial services firm Ebury, said, “A combination of budget jitters and rising bets in favour of a December rate cut from the Bank of England have kept sterling firmly on the back foot so far this week, with the pound slumping towards the 1.31 level on the dollar yesterday, and to its lowest level on the euro since May 2023.”
On Wednesday the US Fed cut interest rates by 0.25% between 3.75% to 4%, Jerome Powell said another rate cut in December “is not a foregone conclusion, far from it.”
Powell added, “There were strongly differing views about how to proceed in December.”
Francesco Pesole, FX strategist at ING, said, “The dollar found more support yesterday on the tail effect of Fed chair Powell’s hawkish press conference and, more marginally, the US-China trade deal.”
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