British Pound buckles as the US yields rise puts Fed in command
The British Pound tested two-month lows of 1.3464, trimmed some of its earlier losses, but it remains in the red, down 0.23% amid a light economic docket in the US and the UK as both central banks of each country get ready to release their monetary policy decisions on September 16 and 17, respective
The British Pound hit two-month lows against the US Dollar, trading at 1.3464, and managed to recover slightly but remains down 0.23% on Wednesday. The pair is expected to experience further decline due to a widening interest rate differential between the US and the UK. Both countries' central banks are set to release monetary policy decisions on September 16 and 17, respectively.
The US 10-year T-note yield surpassed the 5% mark for the first time in four years, prompting speculation that the Federal Reserve may raise rates on September 16. Meanwhile, the Bank of England is expected to maintain its Bank Rate at 3.75%. The strong performance of the US dollar, fueled by hawkish Federal Reserve expectations, is expected to put downward pressure on the British Pound.
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- British Pound: BoE risks in focus – Scotiabank fxstreet.com
