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GBP/USD struggles to hold above 1.32
The pair retreats from multi-month highs after leading as a top performer in August
BoE cut the Bank Rate to 5.00% in early August, with markets expecting at least one more cut this year.
Euro/sterling fell to a three-week low, trading down 0.3% at 84.66 pence per euro.
Bitcoin dipped to $63,952 but is buoyed by rate cut expectations; crypto narrative shifts as Harris leads in polls.
In Currencies
Sterling has been one of the top-performing major currencies this year, gaining momentum in the past two months due to a series of stronger-than-anticipated economic data.
The British pound touched highs of $1.322 before edging lower to 1.3195, meanwhile the Euro/sterling fell to a three-week low, to trade down at 84.66 pence per euro.
Recent figures revealed that British consumer confidence remained near a three-year high in August. Whilst UK business activity picked up pace in August and cost pressures eased to their lowest level in over three years.
In early August, the BoE lowered its Bank Rate to 5.00% from a 16-year high of 5.25%. Market pricing suggests that traders anticipate at least one more rate cut before the end of the year.
Crypto drops after weekend rally
In the crypto market, Bitcoin was last seen dipping to $63,952. However, the cryptocurrency remains supported by expectations of rate cuts and has rallied following Powell's signal regarding potential rate reductions. Lower rates are favorable for speculative assets like crypto, as they increase liquidity available for investment in the sector.
Meanwhile recent developments have shifted the narrative for crypto, as Harris now leads, reversing earlier market speculation that a Trump victory would be more beneficial for cryptocurrencies.
