The pound recorded its worst week this year as investors struggled with interest rate expectations on both sides of the Atlantic.
Sterling ended the week down almost 1 percent against the dollar as bets on Bank of England rate cuts were brought forward.
Figures published yesterday showing that inflation expectations among the UK public were at their lowest level since August 2021 increased pressure on the Bank to act sooner.
Worst week: Sterling ended the week down almost 1 percent against the dollar as bets on Bank of England rate cuts were brought forward.
Separate data earlier this week showed the labor market is cooling.
At the same time, the likely timing of a cut by the US Federal Reserve is being pushed back after figures show an unexpected rise in inflation.
But traders see a 50/50 chance of a UK cut in June.
