Pound Stalls Ahead of Fed and BoE Decisions

The British pound hovered around $1.33 on Wednesday, nearing its weakest level in almost a month.

Investors were waiting for policy decisions from the US Federal Reserve and the Bank of England, with the Fed expected to leave interest rates unchanged but still pricing in a 30% chance of a 25-basis-point hike.

The BoE is also expected to keep its Bank Rate at 3.75%, with investors focusing on the vote split for signals on the future policy path.

Recent data showed UK inflation slowed to a 15-month low of 2.6% in June, below the BoE's forecast, supporting expectations of a pause.