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The pound trims gains
It is a quiet week in terms of UK economic announcements, and this could allow the US dollar to dominate as it has done for the past few months.
Yesterday, William Dudley of the Federal Reserve stated that the level of inflation did not justify an increase in interest rates but the Fed’s decision will be data driven.
Fed member Jerome Powell is due to speak at 2.20pm (London time). Central bankers are known to contradict each other, so if Mr Powell takes a more hawkish tone it could drive the pound to $1.6291, with the next level below at $1.6260.