Sterling still trading close to one month lows

The British pound edged up on Thursday, staying close to this week's one-month lows against the dollar, as markets found some stability after a highly choppy start to the week.

Sterling is currently trading at $1.2667 against the Dollar, but it remained on track for a fourth consecutive weekly decline, having dropped nearly 1% so far this week, marking its longest stretch of weekly losses in nearly a year.

The euro, which reached its highest level against the pound since late April on Thursday, edged up 0.1% to 86.23 pence.

The Bank of England's narrow decision to cut interest rates last week dealt a blow to the pound. Since then, concerns about a potential hard landing for the U.S. economy, among other factors, have sparked a selloff in risk assets, dragging sterling down along with other global markets.

On Thursday, however, the dollar side of the currency pair faced increased pressure. Currency markets are currently pricing in a full percentage point of Federal Reserve rate cuts this year, compared to around 45 basis points for the Bank of England, which theoretically gives the pound an advantage.

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