Bailey Cools Rate Hike Bets, Pound Falls Further

The pound-to-euro exchange rate is facing further losses in the short term as the Bank of England's Governor Andrew Bailey has cooled expectations for higher interest rates.

Bailey's comments to the Treasury Select Committee have led to a softening of market pricing for a hike, which in turn has put downward pressure on sterling.

The pound had attempted to rally earlier this week but was unable to sustain its gains, falling back to 1.1647 after a failed attempt at reaching 1.1667.

This is not the first time that the pair has experienced such a pattern of failed rallies, with advances being extinguished and the pound returning to its summer floor.