Pound Retreats Against Dollar Amid Fed Uncertainty and BoE Await

The British pound retreated against the US dollar on Thursday, falling to around 1.3350 and marking a decline of over 0.10% for the day.

This move came after the pound had risen to its highest level of the week on Wednesday amid improving market sentiment, but renewed interest in the dollar temporarily halted sterling's rebound.

The recent strength in the US dollar was largely driven by the Federal Reserve's July policy meeting, where the Fed held rates steady but revealed notable internal divisions with a 9-3 vote to maintain current rates.

Although the Fed did not signal further tightening, markets remain attentive to the possibility of future rate adjustments, with some investors still predicting at least one more rate hike by the end of the year.