Sterling wavered on Wednesday near a one-month high versus the dollar following a shooting incident near the British Parliament, with a dozen people falling injured, raising tensions in the markets and causing the pound to waver.
GBP/USD last traded at 1.2478, compared to the opening of 1.2480, with an intraday high at 1.2507, and a low at 1.2423.
The police shot an attacker today outside the British Parliament where loud noises were heard, with the Police saying it's treating the incident as a terrorist accident until proven otherwise.
The incident caused tensions in the markets and forced the pound to dither as investors look for alternative investments, after sterling hit a four-week high earlier this session despite dollar's slight recovery against a basket of currencies.
The pound is still holding on its gains after better than expected inflation data from Britain yesterday, raising expectations for the Bank of England to increase interest rates to arrest inflation before it spirals out, specially after one member already voted for a rate hike in the bank's last meeting.