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2025-12-17 16:52:46
[Pound Sterling Suffers Biggest One-Day Drop in a Month as Markets Bet on Further Rate Cuts by the Bank of England] ⑴ The pound suffered its biggest one-day drop in a month after weaker-than-expected UK inflation data increased market bets that the Bank of England will have to cut interest rates further next year. ⑵ The pound fell more than 0.8% against the dollar to 1.3312, hitting a one-week low; the yield on 10-year UK government bonds fell more than 7 basis points to 4.45%. ⑶ The money market increased bets on a Bank of England rate cut, expecting a 67 basis point cut by the end of next year, higher than the 58 basis points before the inflation data release. ⑷ Traders revealed that after the data release, hedge funds sold pound against the euro and dollar in the spot market.
