Pound Slips Ahead of Bank of England's Interest Rate Signals

The pound has slipped to $1.3529 as traders await the Bank of England's signals on interest rates and inflation risks.

At a UK parliamentary hearing, policymakers including Governor Andrew Bailey will provide crucial insights into the road ahead for monetary policy.

Markets are expecting the BoE to hold interest rates at 3.75% next week, but traders are weighing the balance between stubborn inflation risks and signs of economic cooling.

The potential for a single quarter-point rate increase by the end of 2026 is already priced in by futures markets, but policymakers' tone on inflation can influence expectations.