Currency Jitters: Dollar Dominance Pressures Sterling

The pound weakened slightly against the dollar as investors closely watched President-elect Trump's Treasury Secretary pick. Despite a brief rise from inflation data, sterling declined by 2% against the dollar this month. Low trader expectations for UK rate cuts persisted, while market focus shifted to upcoming business activity surveys.

The British pound struggled against the dollar, falling slightly as attention centers on President-elect Donald Trump's upcoming Treasury Secretary appointment. This decision is crucial, influencing potential growth, trade, and tax policies.

Despite sterling seeing a small uptick due to UK inflation data released the previous day, it ultimately dropped 2% against the dollar for the month. Analysts attribute sterling's slip partly to Euro uncertainties and aggressive U.S. trade stances.

The Bank of England's anticipated slow approach to rate cuts adds to the mix, with significant doubt among traders about a cut soon. Market analysts' eyes are now on upcoming business activity surveys, which could further impact currency trends.

(With inputs from agencies.)