Sterling Stalls as Markets Eye Bank of England's Next Move

The British pound, Sterling, held steady on Thursday as investors turned their attention to the Bank of England's upcoming interest rate decision. This comes after the Federal Reserve meeting concluded with a rate hike, sending the U.S. dollar to a seven-week high.

However, the dollar later retreated due to falling energy prices. Meanwhile, market expectations suggest that the Bank of England will maintain steady interest rates and reduce its government bond holdings at a gradual pace.

Derek Halpenny, MUFG's head of research for global markets, noted that a dovish stance by the BoE could support the pound, but significant gains are unlikely before the UK budget on October 28th. Prime Minister Andy Burnham has pledged to make tough decisions to stabilize the economy amid rising inflation rates.