FXpert

The pound rallied more than half a percent on Wednesday as investors trimmed their short bets before the Bank of England's policy meeting on Thursday where it may strike a relatively more confident tone than its peers.

The dollar dipped against the euro on Wednesday, though remained near two-week highs as investors waited for the Federal Reserve to release a policy statement later in the day.

Sterling barely budged from near five-month lows after arch-Brexiteer Boris Johnson was confirmed as the frontrunner to become Britain's next prime minister on Tuesday.

The U.S. dollar was little moved on Tuesday as traders held off making large bets before the Federal Reserve's policy announcement on Wednesday.

The pound dived to a near six-month low against the dollar on Monday as concerns grew that arch-Brexiteer Boris Johnson will replace Theresa May as prime minister as he remains far ahead of his rivals in the race to lead their ruling Conservative Party.

The U.S. dollar was roughly unchanged on Monday, hovering near the two-week high set earlier in the session as investors reconsidered how dovish the Federal Reserve is likely to be at this week's policy meeting.

The British pound fell again on Friday as investors trimmed their positions after Brexiteer Boris Johnson moved closer to becoming the next prime minister, with sterling on track for its sixth week of losses versus the euro.

The dollar index climbed to its highest in almost two weeks on Friday after encouraging retail sales data for May released ahead of a Federal Reserve policy meeting next week eased fears that the U.S. economy is slowing sharply.

The pound held near a five-month low against the euro on Thursday after Boris Johnson won by far the most support from Conservative lawmakers in the first round of the contest to replace Prime Minister Theresa May.