Sterling Slips as US-Iran Talks Lose Momentum
Sterling weakened slightly towards $1.32, close to its weakest level in three months, as investors turned to safe-haven assets amid fading optimism that progress could be made in talks between the US and Iran. The pound also remained in focus ahead of Chancellor John Healey’s first Labour Party conference speech later today, with the Budget due in around a month and details of potential policy measures beginning to emerge. Among the proposals under consideration is a revival of the Help to Buy scheme, a loan-guarantee programme designed to help first-time buyers purchase new-build homes. Meanwhile, investors increased bets on tighter Bank of England policy, pricing in an over 80% chance of a rate hike in November. BoE Governor Andrew Bailey said last week that persistently high energy prices would make it harder to keep rates on hold, while MPC members Sarah Breeden and Clare Lombardelli signaled growing support for a rate increase.
32, close to its weakest level in three months, as investors turned to safe-haven assets amid fading optimism that progress could be made in talks between the US and Iran. The pound also remained in focus ahead of Chancellor John Healey’s first Labour Party conference speech later today, with the Budget due in around a month and details of potential policy measures beginning to emerge. Among the proposals under consideration is a revival of the Help to Buy scheme, a loan-guarantee programme designed to help first-time buyers purchase new-build homes.
Meanwhile, investors increased bets on tighter Bank of England policy, pricing in an over 80% chance of a rate hike in November. BoE Governor Andrew Bailey said last week that persistently high energy prices would make it harder to keep rates on hold, while MPC members Sarah Breeden and Clare Lombardelli signaled growing support for a rate increase.