Sterling tops $1.355, near 3-month high ahead of UK data
The British pound strengthens to around $1.355, its highest level in more than three months, as markets position ahead of UK labour-market figures Tuesday and inflation data Wednesday.
The British pound strengthened to around $1.355, its highest level in more than three months, as investors positioned ahead of a busy week of UK economic data.
Markets will first focus on labour market figures due Tuesday, followed by inflation data on Wednesday.
Headline inflation is expected to accelerate to a four-month high, although the core rate may ease.
Markets are currently fully pricing in a 25-basis-point BoE rate increase in December, with further moves dependent on the inflation trajectory.
The central bank left rates unchanged in July, while Governor Andrew Bailey said the disinflation process remained on track despite persistent external risks.
However, the prolonged conflict in the Middle East could keep energy prices elevated and add to inflationary pressures.
Meanwhile, expectations for a September Federal Reserve rate hike continue to decline.