Pound Set to Snap Three-Week Winning Streak Ahead of BoE Meeting

The British pound's three-week winning streak appears to be coming to an end as investors reassess their positions ahead of next week's Bank of England (BoE) meeting.

According to Reuters, sterling has retreated after hitting its highest value since May last week and is currently trading marginally higher at $1.3318 against the dollar.

While rate-hike expectations are still in play, with traders pricing in at least one rate hike by the BoE, investors are seeking clarity on new Prime Minister Andy Burnham's fiscal plans and the potential impact of a prolonged pause in monetary policy tightening.

The deteriorating Middle East conflict has also added to uncertainty, with oil prices jumping over $100 a barrel for the first time since May this week.