Pound Slips to 1.32 as US Yields Reach 2004 Levels

The British Pound has slipped to 1.32 against the US Dollar as US Treasury yields continue to rise, reaching levels last seen in 2004.

This has contributed to the strength of the US Dollar Index (DXY), which is up 0.29% at 101.47, posing a headwind for Sterling.

The Conference Board reported that consumer confidence fell to 81.9, below estimates and the lowest level since 2014, while job openings fell in August, but layoffs remained low.

In contrast to this data, two Bank of England (BoE) Monetary Policy Committee members, Alan Taylor and Catherine Mann, have differing views on a potential rate hike. Taylor stated that the case for a rate hike is not compelling unless energy prices remain high and generate clearer signals of transmission into broader inflation persistence.

Mann emphasized that 'inflation staying above 2% is a credibility problem', indicating that the BoE may consider tightening monetary policy to combat rising prices.