According to ChainCatcher, Derek Halpenny of Mitsubishi UFJ said that the prospect of the Bank of England cutting interest rates more than the market expected would hit the pound.

Market expectations for rate cuts this year look "too cautious" and the pound may underperform non-US dollar currencies later this year. The pound was the worst performing G10 currency in the previous trading day. The UK's December manufacturing PMI was unexpectedly revised down and natural gas prices rose sharply, which mildly increased expectations of a rate cut in February. (Jinshi)