Sterling Snaps a Two-day Rally as Dollar Strengthens Ahead of Yellen’s Speech
Sterling turned lower versus its American counterpart on Tuesday following a two-day gaining streak as the dollar strengthened amidst expectations that the Federal Reserve would raise interest rates in December.
The British Pound dropped more than 0.34 percent to trade at $1.3126, sending the pair GBPUSD lower after having on a rise for two sessions in a row. The American dollar has been supported as the chances of a rate hike increase. The central bank is highly anticipated to hike rate for a third time this year in its monetary policy meeting in December and tighten further in 2018.
Meanwhile, demand for the dollar continued to be underpinned by expectations that Donald Trump’s Republican party is edging closer to a long-awaited tax cut program.
Later on the day, Fed Chair Janet Yellen is scheduled to give acceptance remarks in Washington but investors will still tune in to see if she makes comments specific to monetary policy.
Sell Stop at 1.31250, Take profit at 1.30800 , Stop loss at 1.31450