The pound maintained its position against the dollar and experienced a slight increase against the euro on Monday, following its drop to the lowest level since November in the previous week. According to data from the U.S. markets regulator, investors have adopted a neutral stance towards the pound, reducing their bets in both directions. At 0757 GMT, Sterling's value was unchanged at $1.2367, after reaching a five-month low last week. The currency's movement is more pronounced when compared to the euro, excluding the influence of the dollar. Over the year, Sterling has depreciated approximately 3% against the dollar, primarily due to a significant adjustment in expectations for U.S. interest rate reductions.
Market anticipations suggest approximately two quarter-point decreases by the Bank of England within the year, a forecast that is slightly more than that for the Federal Reserve and less than the near three reductions expected from the European Central Bank.
While the pound has gained 0.45% against the euro, its lead has diminished significantly in recent days. The euro saw a 0.1% rise against the pound, valued at 86.21 pence.
Source: reuters.com