Pound Sterling, Bank of England and BoE Cuts
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Sterling was steady against the dollar, but stronger against the euro and elevated inflation and a weakening economy could favor the currency if the BOE stays cautious about cutting rates, Commerzbank said.
The British pound declined in value against the euro and dollar after the UK reported inflation fell in November, while annual inflation roses by less than feared.
Sterling was set for its biggest one-day drop in weeks on Wednesday as investors added to bets that the Bank of England will cut rates on Thursday after data showed British inflation unexpectedly fell sharply in November.
The United Kingdom is poised to release its Consumer Price Index (CPI) data for November on Wednesday at 07:00 GMT, an announcement that comes at a critical tim
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The pound held steady against the euro and the dollar on Friday, after the Bank of England delivered an expected rate cut, while hitting its highest since 2008 against the yen, hit by profit-taking following a well-telegraphed Bank of Japan rate increase.
On Thursday, the GBP/USD exchange rate slipped to approximately 1.3365 during the early European trading session, as the British pound faced headwinds from a re