Sterling tumbles against dollar on profit-taking

Sterling fell in American trade away from the highest since June 24, 2016 versus the dollar, following an array of data and developments from Britain and the US, including Bank of England Governor Mark Carney's speech at the Central Banking Lecture hosted by the International Monetary Fund, in Washington DC.

As of 04:38 GMT, GBP/USD fell 0.55% to 1.3519 from the opening of 1.3504, with an intraday low at 1.3504, and a 15-month high at 1.3619. 

In his Washington speech, Carney asserted again that policy tightening could be required in the next few months, noting that the monetary policy could be altered on par with the possibilities of increasing interest rates back to their normal levels, noting that Brexit is expected to leave inflationary side effects. 

Carney said that rate hikes will be limited and gradual, adding that a drop in the immigration rate could raise the inflation rate in the short term, while having little impact in the long term. 

From the US, earlier US data showed the National Association of Home Builders Housing Market Index down to 64 in September from 68, missing expectations of 67. 

Markets look forward to policy decisions by Federal Open Market Committee members in this week's periodic meeting, at which policymakers are expected to unveil their three-year forecasts for inflation, growth, unemployment, and interest rates.