Sterling on Thin Ice Ahead of Fed and BoE Decisions

The GBP/USD pair traded near 1.3523 on Thursday's American session, down about 0.29% from the day before.

A strong start to the week turned into a reversal as the August producer price index landed at 8:30 a.m. ET, erasing the entire advance.

The pair has been stuck in a narrow range of 1.3525 to 1.3565 since Monday, with sterling facing a policy split ahead of key decisions from the Fed and BoE next week.

A long-standing interest rate advantage for the dollar has largely disappeared, with the UK's central bank holding Bank Rate at 3.75% and the Federal Reserve's target range is 3.50% to 3.75%, making it a contest of which central bank moves next and in which direction.