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Pound Slips As Market Pare Rate Cut Bets
The pound sterling extend its losses against the greenback following the release of U.S PCE Price Index data which reduce expectation of Fed rate cut bets. The PCE inflation report showed that the core inflation, which excludes volatile food and energy prices, came in with 2.6%, slower than estimates of 2.7%. On a month-on-month basis, the underlying inflation rose by 0.2%, as expected. Currently, financial market participants expect that the Fed is almost certain to start reducing interest rates in September. However, signs of stickiness in price pressures from the PCE inflation data have diminished bets supporting ... (full story)
