Sterling climbed in European trade on Tuesday against a basket of major rivals, while recovering from two-month lows against the US dollar, thus hovering around the psychological barrier of $1.3.

Now traders await Bank of England Governor Andrew Baileys speech later today, which could provide clues on the future of UK interest rate cuts this year.

The Price

The GBP/USD pair rose 0.25% today to $1.3015, with a session-low at $1.2980.

The pound closed down 0.5% on Monday against the dollar, approaching two-month lows at $1.2974.

UK Inflation

UK consumer prices rose 1.7% y/y in September, the lowest such reading since 2021, and below the 2% target.

The odds of a 0.25% interest rate cut by the Bank of England at the November meeting surged to 100%, with another expected cut in December.

Bailey

Later today, BOE Governor Andrew Bailey is talking at the Bloomberg Global Organizational Forum in New York, and could provide hints at the path ahead for UK interest rates.

Bailey recently told the Guardian the central bank could move faster to cut interest rates if inflation remained under control.