Sterling sharpens decline below 1.4 versus dollar

Sterling continued its downward spiral away from February 16 highs against the dollar, following earlier data from the US, and amid a lack thereof from Britain. 

Federal Reserve Chair Jerome Powell is testifying on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC, today. 

As of 04:38 GMT, GBP/USD fell 0.50% to 1.3898 from the opening of 1.3968, with a one-week low at 1.3858, and a session-high at 1.3997. 

UK treasury secretary Philip Hammond said in earlier remarks that the services sector could be included in the trade deal with the European Union, while the UK Prime Minister spokesman said Britain will host the Saudi king later this month to discuss various issues and sign up trade and investment deals. 

In his testimony earlier today, Powell expressed admiration for former Chair Janet Yellen's work to strengthen the economy and normalize the balance sheet, lauding her for helping to smooth out the transition and provide continuity in monetary policy. 

Powell expected the Fed to continue tightening monetary policy gradually, while pointing to economic outlook as strong, asserting the importance of balancing the push of inflation just towards the target and not beyond it, adding that labor strength will underpin spending and income. 

Earlier US data showed durable goods orders fell 3.7% in January, compared to a 2.8% rise in December, and missing expectations of a 2.4% drop, while core orders also fell 0.3%, compared to a 0.7% rise in December and missing forecasts of 0.4% rise. 

The goods trade deficit widened while wholesale inventories rose past expectations in January, as the House Price index slowed more than expected in December. 

The Richmond Manufacturing Index rose to 28 in February from 14 in January, beating expectations of 15, while the CB consumer confidence survey rose to 130.8 in February from 124.3 in January, beating forecasts of 126.2.