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23.09.202614:48:49UTC+00Sterling Falls as Strong US Data Boosts Dollar

The British pound fell sharply to around $1.325, its weakest level since late June, as the US dollar strengthened on the back of stronger-than-expected PMI data and a series of hawkish remarks from Federal Reserve officials. These developments reinforced expectations of further monetary tightening in the US, putting additional pressure on sterling. Rising oil prices, amid ongoing uncertainty over US-Iran negotiations, also weighed on risk-sensitive assets. In the UK, the latest PMI survey indicated that business activity continued to expand in September, though the pace of growth slowed slightly and undershot market forecasts. Despite the softer data, markets are still pricing in a significant probability of a 25-basis-point interest rate increase by the Bank of England in November.

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