FX.co ★ Sterling Falls from 2-Week High Ahead Key Data

The British pound dipped to $1.341, retreating from a two-week high of $1.345 on August 7, as investors anticipate upcoming UK employment and GDP figures. These data releases may influence expectations regarding the Bank of England's monetary policy, following last Thursday’s tight vote to reduce interest rates. The Bank of England trimmed the Bank Rate by 25 basis points to 4%, despite opposition from four members of the Monetary Policy Committee. The decision also hinted at a possible deceleration in the bank's quarterly easing trajectory, attributable to persistent inflationary pressures. Market sentiment is divided over the likelihood of a rate cut in December, with the probability currently estimated at approximately 76%. Projections suggest steady unemployment at 4.7%, while initial GDP figures are expected to show a significant slowdown to 0.1% in the second quarter, down from 0.7% in the first quarter. Weaker data could increase speculation regarding another rate cut this year. On the trade front, the 90-day tariff truce between the US and China is set to expire on Tuesday, though an extension is anticipated. In geopolitics, a meeting is scheduled for Friday in Alaska between US President Trump and Russia’s President Vladimir Putin, aimed at achieving a peace agreement concerning Ukraine.