0801 GMT - Sterling falls to a two-week low against the dollar and a 10-day low versus the euro after Bank of England Governor Andrew Bailey signalled the prospect of more aggressive interest-rate cuts if inflation continues to ease. Bailey's remarks in a Guardian interview published Thursday undermine sterling's yield differential with the U.S. and Europe, XTB analyst Kathleen Brooks says in a note. "The market has used Bailey's comments as a green light to price in more monetary loosening." Sterling is also hit by risk aversion amid Middle East tensions and may struggle to recover unless these ease and if U.K. inflation data exceed expectations, Brooks says. GBP/USD falls to a low of 1.3151. EUR/GBP hits a high of 0.8389. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
October 03, 2024 04:01 ET (08:01 GMT)
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