Pound Struggles as Markets Await Warsh Speech for Hawkish Clues

The British pound is struggling against the US dollar, trading below the 1.3600 level on Monday as investors become cautious ahead of a highly anticipated speech by Federal Reserve Governor Kevin Warsh.

The pound's weakness is largely due to the strength of the US dollar, which has been firming up as markets position for a potentially hawkish tone from Warsh. A dovish tone from Warsh could signal a slower pace of rate cuts or even a pause in monetary policy, bolstering the greenback.

The UK's economic calendar is relatively quiet this week, leaving the pound without strong domestic catalysts. Traders are weighing the Bank of England's recent rate decision and its impact on the UK growth outlook.