Pound’s rise against dollar expected to take hit

It’s a tentative start to the day’s trading on financial markets with the focus firmly on the United States. Jackson Hole in Wyoming, to be exact.

That is where the chair of the US central bank will make an eagerly anticipated speech in which he is widely expected to signal that the first interest rate cut by the Federal Reserve will come next month.

Jay Powell is, however, expected to temper market expectations for several rate cuts by the end of the year.

That could hamper recent progress against the US currency by the pound, which is currently trading at one-year highs versus the dollar at $1.31.

It could also hurt a rate-sensitive stock market, which is desperate for lower borrowing costs.

As such, the FTSE 100 is trading 0.2% up in early deals at 8,304.

Miners and energy stocks are leading the way on upticks in prices.

Brent crude oil stands at $77 a barrel.