Sterling was little changed on Friday, easing about 0.02% as the US dollar recovered after Thursday’s intervention day pushed the US Dollar Index (DXY) to a 30-day low. GBP/USD traded around 1.3458 at the time of writing, after earlier dealing near 1.3450 in Asian hours and about 1.3444 during the European session.
Pound Performance and Bank of England Expectations
The pound underperformed major peers as markets reassessed Bank of England interest rate expectations for the September policy meeting following Thursday’s monetary policy announcement.
Dollar Support and Federal Reserve Dynamics
At the same time, the dollar found support from what was described as a hawkish pause by the Federal Reserve, alongside an internal policy split within the FOMC, which helped reverse some of the prior day’s weakness and weighed on GBP/USD after three straight sessions of gains.
