Sterling pares losses after BoE member's remarks

Sterling pared its losses on Tuesday after hitting a two-week high, with the recovery coming after Bank of England member Christine Forbes who said the British economy could need a rate hike soon as inflation rates climb.
 
GBP/USD last traded at 1.2483, compared to the opening of 1.2466, with an intraday high at 1.2489, and a low at 1.2339.
 
Sterling fell to a two-week low today as the dollar rebounded against a basket of currencies, weighing on the pound, while investors shun risky assets amid political tensions.
 
The pound pared its losses anew and reversed higher after Forbes pointed to the strength of the British economy, as inflation improves, paving the way for a rate hike.
 
Forbes also pointed to some indicators showing an accelerating inflation in the coming period, while asserting that stimulus policies will continue even with a rate hike, and that Brexit negotiations with the European Union will be big mover in the near future to both the pound and economic confidence.