Sterling on track for 4th week of decline versus dollar

British pound steied against dollar on Friday but was set for its fourth consecutive week of declines, as investors weighed prospect of more interest rate cuts from Bank of England (BoE) amid concerns about slowing global growth.

Sterling was flat against dollar at $1.2754.

It fell to a more than five-week low of $1.2666 on Thursday but closed up 0.5 per cent as dollar side of currency pair came under more pressure.

pound's recent fall has been triggered by volatile tring across global markets after soft US jobs data last week raised fears of an ecomic downturn and bigger interest rate cuts from Federal Reserve.

currency was alrey near a one-month low last week when BoE cut rates for first time since 2020 in a 5-4 vote that took borrowing costs down to 5 per cent.

Money markets show trers are pricing in furr rate cuts of 42 basis points (bps) from BoE by end of this year, compared to 46 bps a week ago and 56 bps priced in at peak of market turmoil on Monday.

Trers currently expect rate cuts of 103 bps from Federal Reserve by end of 2024.

Against euro, sterling firmed for a third consecutive session to 85.59 pence. Euro/sterling touched a more than three month high of 86.25 pence at one point on Thursday.

" huge gains of late July and early August mean that this is t surprising, but overall new bullish view remains in place," ted Chris Beauchamp, chief market analyst at IG.

"If price holds 200-day (simple moving aver) n a rebound towards £0.86 may develop. A close back below 85 pence in coming weeks might signal that a lower high has been created."

200-day SMA is currently around 85.566 for euro/sterling.

Against yen, biggest mover in currency markets in recent weeks, pound held stey at 187.83 yen, rebounding from its weakest level since January hit on Monday at 180.05 yen.