Sterling Rides Shallow Waves Amid Economic Volatility

In a muted trading session, the British pound slightly fell against the dollar and gained slightly against the euro amidst a U.S. holiday. Despite November's volatility, the pound showed resilience due to a potentially hawkish Bank of England and U.S. tariff threats on the euro zone.

The British pound edged lower against a robust dollar and marginally gained against the euro in a subdued trading session, attributed to a U.S. holiday, which kept trading volumes low as U.S. stocks and bond markets were closed.

Nevertheless, the pound is on track for its best weekly performance in 11 weeks, bolstered by bets on a possibly more aggressive Bank of England policy and the impending tariff threat under incoming U.S. President Donald Trump's administration, weighing on the euro zone.

Despite a bleak business climate indicated by the Confederation of British Industry's survey, sterling outperformed other currencies, rising against the yen and showing lesser monthly losses compared to the euro.

(With inputs from agencies.)