Sterling fell in European trade for the fourth straight session against dollar, amid a grim outlook for the UK economy in the second quarter of the year.

The dollar is maintaining its gains near 11-week highs amid strong bets on high US interest rates for an extended duration. 

GBP/USD fell 0.1% to 1.2409, with a session-high at 1.2438, after closing down 0.1% yesterday, the third loss in a row. 

UK Economy

Some global banks are expecting the UK economy to slow down sharply in the second half of the year, led by the housing sector, which might force Bank of England to cut interest rates early. 

JPMorgan's analysts are pointing to the deteriorating markets of the UK housing sectors with the background of high and stubborn inflation.

Mortgage approvals continue to decline, an indication that current financial conditions are weighing on consumers. 

JPMorgan forex strategists are now selling the UK pound, noting it's only a matter of time before an extended duration of decline due to weaker growth. 

Dollar

The dollar index rose 0.1% on Wednesday for a second session on track to hit an eleven-week high at 104.69 against a basket of major rivals. 

Markets are betting the Federal Reserve will maintain interest rates higher for a longer period of time, in turn underpinning the greenback. 

Gold prices rose on Tuesday even as the dollar muscled up against major rivals, but the precious metal was still boosted by changing yields on US treasury yields. 

US two-year treasury yields rose by 7.5 points to 4.533%, while 10-year treasury yields rose 2.6 basis points to 3.714%, as 30-year treasury yields stabilized at 3.895%. 

There's no impactful US data released today, while Fed officials embark on their silent period ahead of the policy meeting. 

However markets are putting a 75.9% chance of no change in US monetary policies at the Fed's June meeting. 

‏However investors are looking forward for official clues on the path ahead for policies and interest rate moves in July.

Allianz chieft economist Muhammad Al-Aryan said that while concerns about a US debt default have subsided, markets now are looking forward to the Fed's efforts to contain inflation.

Despite risks surrounding high interest rates in the last 15 months, the tech sector was particularly brilliant amid the AI industry boom.

Otherwise, the dollar index rose 0.2% as of 19:03 GMT to 104.2, with a session-high at 104.3, and a low at 103.8.

On trading, gold spot prices rose 0.3%, or $6.30 as of 19:04 GMT to $1,980.5 an ounce. 

US stock indices rose mildly on Tuesday amid pressures on the US banking sector while investors following the yields on US treasury bonds.

Several banks registered losses after reports that regulators are considering a tightening of capital requirements in major banks. 

Allianz chieft economist Muhammad Al-Aryan said that while concerns about a US debt default have subsided, markets now are looking forward to the Fed's efforts to contain inflation.

Despite risks surrounding high interest rates in the last 15 months, the tech sector was particularly brilliant amid the AI industry boom.

On trading, Dow Jones rose 0.1%, or 18 points as of 16:12 GMT to 33,585, as S&P 500 rose 0.2%, or 9 points to 4,283, as NASDAQ climbed 0.3%, or 41 points to 13,270. 

Copper prices stalled on Tuesday on continuous concerns about economic growth following weak US and European data. 

Copper three-month futures at the London Metals Exchange fell 0.7% to $8281 a tone after a 1.2% surge on Monday.

SaxoBank's analysts in Copenhagen said that recent weak US data indicates the US economy is finally showing signs of weakness, in turn impacting demand on industrial metals.

Recent US services data showed a very timid growth in May as new orders slowed down sharply.

Short sellers benefited highly from the weaker copper prices at the London Exchange, with prices failing to pierce the 200-day SMA technical resistance. 

In Shanghai, copper prices hit four-week highs amid some hopes for China to launch fresh stimulus measures. 

Copper July futures at the Shanghai Futures closed 0.7% higher at 66,450 yuan a tone. 

As for other metals aluminium prices fell 1% at the London Exchange to $2221 a tone, while nickel rose 1.4% to $21,195, as Zinc rose 0.3% to $2295, while lead rose 0.3% to $2,033, as tin rose 0.9% to $25,795. 

Otherwise, the dollar index rose 0.2% as of 15:54 GMT to 104.2, with a session-high at 104.3, and a low at 103.8.

Copper July futures in American trade fell 0.6% to $3.74 a pound as of 15:47 GMT.