LONDON (Reuters) - Sterling fell to a near two-week low against the U.S. dollar after Bank of England chief Mark Carney said that there could be a “relatively prompt response” from the bank if it looked like weakness in the economy will persist.
Sterling was last down 0.5% at $1.3028, its lowest level since Dec. 27. GBP=D3 Sterling also fell against the euro, down 0.6% at 85.27 pence. EURGBP=D3
British government bond yields fell, with two-year gilt yields last down almost 5 basis points on the day at 0.59% GB2YT=RR. Bond yields move inversely with prices.
Money markets currently price a roughly 60% chance of a 25 basis point interest rate cut by December, versus just over 50% at the end of 2019 BOEWATCH
Reporting by the London Markets Team, writing by Yoruk Bahceli