Pound Bounces Against Dollar This Week Before Decline Resumes

The British pound is expected to bounce against the US dollar this week before its decline resumes. According to Pound Sterling Live, the pound has been under pressure since August and may see some recovery due to technical support from its 21-day moving average.

However, the base case is that any bounce will be short-lived, and the decline will resume later in the week. The dollar continues to carry momentum from last week's Federal Reserve decision to raise interest rates, which has kept global capital drawn into the currency.

The Bank of England's hold on interest rates also contributed to the pound's weakness. Monetary Policy Committee members Swati Dhingra, Sarah Breeden, and Clare Lombardelli are scheduled to speak this week, and their remarks could provide insight into the committee's views on a potential November rate hike.