FX.co ★ Sterling Rebounds from 11-Week Low

The British pound experienced a rebound to $1.329 from its 11-week low of $1.321 on July 31, attributed to a weakening US dollar following a jobs report that fell short of expectations, indicating a cooling labor market. Despite this recovery, the pound suffered a significant 3.8% decline in July, marking its poorest monthly performance since September 2022. Concerns about the UK's economic outlook and fiscal stability have continued to dampen investor sentiment. Investors remain increasingly pessimistic about Britain’s growth prospects, especially in comparison to the more robust US economy. Furthermore, the Bank of England is anticipated to lower interest rates next week by 25 basis points, bringing them down to 4%.