Market Watch: Bailey's Speech to Influence the Pound

Forex - Monex Europe argues that the pound is losing value against the strengthening dollar, but if Bank of England Governor Andrew Bailey adopts a cautious approach regarding future interest rate cuts in his upcoming speech, the depreciation may be limited. Monex analysts forecast that if Fed Chairman Jerome Powell continues to provide a "non-binding" view on interest rate cuts during his speech in Dallas, Texas, at 2000 GMT, the dollar could rise further. However, analysts also indicated that Bailey might be "cautious on policy easing" during his speech in London at 0000 GMT, which would help to limit the downward movement of the pound against the dollar. The pound has dropped to $1.2669, its lowest level in three months.