FXpert

Britain's pound slipped to a one-week low versus the dollar and weakened against the euro on Tuesday on concern about Britain's future relationship with the European Union and ahead of a Bank of England meeting that could see an interest rate cut.

The Japanese yen and Swiss franc eased off earlier highs as fears about the economic fallout from the coronavirus outbreak in China waned, though the dollar index held near two-month highs.

The British pound edged lower on Monday as markets await this week's Bank of England decision on interest rates, which many analysts see as too close to call.

The U.S. dollar index, the Japanese yen and the Swiss franc strengthened on Monday, while the offshore yuan tumbled and the Australian dollar notched a four-month low as fears about the spread of the coronavirus in China pushed investors into safe-haven assets.

Mexico registered its biggest economic slowdown in a decade last year, and expectations for 2020 are not much better.

The U.S. dollar slipped against the safe-haven Japanese yen on Friday as investors fretted over concerns that a spreading virus from China would curb travel and hurt economic demand.

Sterling retreated on Friday after initially strengthening, as some investors still expected an interest rate cut next week even though business surveys pointed to a post-election bounce in the British economy.

The pound extended gains on Thursday, building on the one-month high it reached against the euro in the previous session, as data this week reduced market expectations of a central bank rate cut as early as next week.

The dollar rose against the euro on Thursday after the European Central Bank held interest rates steady and launched a broad review of its policy that was likely to see new President Christine Lagarde redefine the ECB's main goal and how to achieve it.