FX.co ★ Sterling Holds Near 10-Week High

The British pound has maintained a position above $1.363, hovering near its highest point in more than ten weeks. This comes as traders focus on significant central bank announcements. The Bank of England is anticipated to keep interest rates steady at 4% this Thursday, while also decelerating its £100 billion annual bond reduction strategy. Recent figures reveal that UK inflation held steady at 3.8% in August, in line with expectations and matching the 18-month peak seen in July. Meanwhile, employment data indicated a stable unemployment rate of 4.7%, wage growth at 4.8% when excluding bonuses (4.7% including bonuses), and a minor decrease in payrolls by 8,000, all aligning closely with forecasts. Market expectations for a BoE rate cut remain largely unchanged, with only a one-in-three probability of a rate change by December. Concurrently, the US Federal Reserve is broadly anticipated to lower rates by 25 basis points today, with market participants predicting at least two additional cuts by the close of 2025.