# Sterling falls vs dollar as focus turns to UK data
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-15
Category: TRADING
Category URL: https://financedigest.com/category/trading
Meta Title: British Pound Falls Against Strong Dollar: Labour Market
Meta Description: Stay updated on the latest British pound news with insights on labour market data and potential BoE rate hikes in September.
URL: https://financedigest.com/sterling-falls-vs-dollar-as-focus-turns-to-uk-datahtml

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LONDON (Reuters) – The British pound fell on Monday against a broadly stronger dollar at the start of a week where traders and the Bank of England (BoE) will get the latest insight into the strength of the labour market and price pressures.

Focus is on jobs data on Tuesday and inflation figures on Wednesday, which could give a hint on whether the BoE opts for a second consecutive 50 basis point rate hike at its September meeting.

Headline CPI is expected to have jumped to 9.8% in July.

[Money markets currently price in around an 85% chance of a half-point rate hike at the central bank’s](https://www.financedigest.com/marketmind-banks-are-leaking-money.html "Marketmind: Banks are leaking money") September meeting and a total of almost 125 bps of tightening by year end.

30 out of 51 economists [polled by Reuters](https://www.financedigest.com/bank-of-england-to-raise-rates-by-50bps-again-to-tame-inflation-reuters-poll.html "Bank of England to raise rates by 50bps again to tame inflation: Reuters Poll") between Aug. 9-12 [expect the BoE to deliver another 50 basis point increase to borrowing costs](https://www.financedigest.com/five-cost-of-living-trends-expected-in-2023.html "Five cost of living trends expected in 2023") next month.

Despite some risk of tightness in the jobs market starting to ease, we doubt the [data will be enough](https://www.financedigest.com/the-challenge-of-keeping-data-secure-why-in-house-security-isnt-enough.html "The challenge of keeping data secure: why in-house security isn’t enough") to shake off market pricing that another 50 bp is on the table for September,” ING global head of markets Chris Turner said in a note.

By 0829 GMT, the [pound was down 0.33% against the stronger dollar](https://www.financedigest.com/pound-hits-10-month-peak-euro-up-as-dollar-under-pressure.html "Pound hits 10-month peak, euro up as dollar under pressure") at $1.20955.

Against the euro, sterling was [little changed](https://www.financedigest.com/stocks-dollar-little-changed-as-inflation-data-sends-mixed-signals.html "Stocks, dollar little changed as inflation data sends mixed signals") at 84.555 pence.

Meanwhile, BoE governor Andrew Bailey told [British finance minister Nadhim Zahawi he was “open to a review” of the central bank’s](https://www.financedigest.com/hsbc-acquires-british-arm-of-stricken-silicon-valley-bank.html "HSBC acquires British arm of stricken Silicon Valley Bank") mandate, the Telegraph newspaper reported.

Liz Truss, the front-runner to become the next Conservative Party leader and prime minister, previously said she plans to conduct a review of the [Bank of England’s](https://www.financedigest.com/the-recent-bank-of-england-meeting-the-biggest-rate-hike-recession-warning-and-the-fallout.html "The recent Bank of England meeting, the biggest rate hike, recession warning and the fallout") policy remit.

Truss is 22 percentage points ahead of her rival [Rishi Sunak](https://www.financedigest.com/british-pm-rishi-sunak-pledges-further-action-on-strikes-to-protect-lives.html "British PM Rishi Sunak pledges further action on strikes to ‘protect lives’") in the contest to become the country’s next prime minister, a poll of Conservative Party members by Opinium Research showed on Saturday. The winner of the contest will be announced on Sept. 5.

(Reporting by Samuel Indyk; Editing by Kirsten Donovan)


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