Pound Weakens Against Dollar Ahead of Burnham Speech

The British pound weakened against the US dollar on Tuesday but firmed slightly against the euro ahead of Prime Minister Andy Burnham's speech at the Labour Party's annual conference.

The pound lost 0.2% to $1.3226, near a three-month low, as high US bond yields and oil prices contributed to a stronger dollar.

Burnham will address the nation with an 'honest conversation' about tackling deep-seated problems like social care and utility control, but his speech may not have a significant market impact.

Finance Minister John Healey's pledge for fiscal responsibility on Monday helped the pound and UK government bonds avoid severe selling, according to Societe Generale analyst Kenneth Broux.