Pound sterling continues to suffer as traders pare bets on Fed rate cuts
Sterling suffered again on Monday, falling to a 14-month low against the dollar amid a global sell-off prompted by concerns that the US Federal Reserve will only cut interest rates once this year.
The pound was trading as much as 0.7 per cent lower against the dollar this morning, dropping to $1.211. It was the worst performing currency against the dollar in the G-10.
“Sterling continues to trade on a soft footing and its losses could extend this week,” Chris Turner, an FX analyst at ING said, suggesting the pound could fall to as low as $1.20.
The sell-off comes after a bruising week for UK assets last week, with sterling falling over three per cent and gilt yields picking up to the highest levels in decades.
https://www.cityam.com/pound-sterling-continues-to-suffer-as-traders-pare-bets-on-fed-rate-cuts/
