The British pound rose 0.16% against the dollar to $1.2678, recovering from its recent decline, amid prospects of interest rate cuts by the US Federal Reserve and European Central Bank while policy in the UK remains relatively calm.
Despite political turmoil in France and weaker-than-expected retail sales in November in the UK, the pound remained steady, even showing some recovery.
The currency moves come amid expected interest rate cuts from the Federal Reserve and the European Central Bank, which investors believe could arrive as soon as December and have tempered the Fed’s dovish outlook, especially after governors signaled a 70% probability of a 25 basis point cut this year. month, from pressure on the pound sterling.
