Pound Falters on Rate Hike Uncertainty Ahead of October Budget

The British pound has held near its six-month high of $1.3632 due to conflicting factors influencing its value.

On one hand, expectations of a Bank of England rate hike are supporting the currency, with Reuters reporting that some economists still see rates increasing this year despite a run of positive economic data.

However, others believe that rates may stay put, which could lead to the currency's rally fading if 'one more hike' becomes less likely.

The uncertainty is affecting the euro as well, with the EUR/GBP exchange rate potentially moving towards 0.870 in the coming months, according to ING.