Sterling's Struggle: Economic Data and BoE's Impact

Sterling slightly declined against the euro while remaining steady against the dollar, as investors await economic data and a speech from Bank of England Governor Andrew Bailey. Policy shifts and upcoming US inflation and UK GDP data will influence the BoE’s future rate path. Political and economic factors affect Sterling's performance.

Sterling took a slight dip versus the euro and stayed level against the dollar, with investors on edge awaiting critical economic data and Bank of England Governor Andrew Bailey's speech. BoE's policymaker, Catherine Mann, indicates future UK price hikes align with targets, reports FT.

Mann, shifting from her stance as the Monetary Policy Committee's most hawkish member, recently pushed for a larger rate cut to 4.25%, while the bank opted for a modest reduction to 4.5%. Markets keenly anticipate US inflation data and UK GDP figures, key influencers of the BoE's rate strategies.

Given current economic dynamics, Sterling, marginally down at 83.40 pence per euro, faces fluctuating fortunes. An uptrend against the euro may persist, fueled by European political uncertainties and strategic UK-German yield differences. Sterling remains steady against the dollar at $1.2364, boosted by durable carry advantages and anticipated fiscal strategies in the UK.

(With inputs from agencies.)