Sterling falls off two-month high

Sterling fell today away from a two-month high on profit-taking after setting multi-month highs, capitalizing on dollar's wavering against main currencies near a two-week low.
 
GBP/USD last traded at 1.2711, down from the opening of 1.2726, with an intraday low at 1.2706, and a two-month high at 1.2775.
 
Sterling's rise to a two-month high came as the dollar fell versus major rivals to near a two-week low, following weak U.S. trade balance data.
 
On the other hand, the pound was hurt by Bank of England Governor Mark Carney's speech, pointing to the benefits of sterling's drop on driving consumer prices higher, but there are limits to how high inflation will be allowed to go.
 
Expectations point to a rise to 2% for the CPI index in three years, which would push the central bank to hike interest rates then, while Carney said the economy needs more coordination between the monetary and fiscal policy to support structural reforms and buoy economic growth.