Sterling's Struggle: The Currency Battle Amidst Bank Decisions

The British pound hit a one-month low against the dollar as markets reassess interest rate paths of the Federal Reserve and Bank of England. Sterling remains under pressure amidst differing economic climates, with little domestic influence expected to alter near-term trajectories.

The British pound slumped to a one-month low against the dollar, trading at $1.3570, influenced heavily by global economic conditions rather than domestic factors. It was slightly stronger against the euro, within its typical range at 83.77 pence.

Economist Kristina Clifton notes the pound's trajectory depends more on U.S. and euro zone developments. With no significant U.K. economic data or Bank of England speeches scheduled, GBP/USD will likely follow the USD trend and fluctuating risk sentiments.

With the Federal Reserve's potential rate cuts in flux, influenced by robust jobs data, market expectations that previously supported sterling are waning, resulting in a 2% drop for the currency in October.

(With inputs from agencies.)