Sterling falls 0.13% against the dollar as chipmaking concerns and UK political uncertainty weigh ahead of central bank decisions.
The British pound declined 0.13% to 1.3305 against the US dollar, retreating from a high of 1.3363, as risk sentiment soured. Reports of a Chinese state-backed firm producing chipmaking machines triggered a sell-off in ASML, adding to broader market caution.
Investors are focused on upcoming monetary policy meetings, with the Federal Reserve expected to hold rates steady at 60% odds. A 25-basis-point hike remains unlikely, per Prime Terminal data. In the UK, the Bank of England is also anticipated to keep rates unchanged at 3.75%, despite recent oil price volatility.
UK political uncertainty under Prime Minister Andy Burnham’s new government further pressured sterling. Durable Goods Orders in the US rose 0.3% month-over-month in June, missing estimates of 1.6% growth, while Middle East tensions eased slightly after the US paused attacks on Iran.