• The Pound Sterling trades with caution as investors await BoE Bailey’s speech for fresh guidance on interest rates.
• Bailey may reiterate a dovish stance on the interest-rate outlook, signaling that more interest-rate cuts are on the way.
• The US Dollar outlook remains upbeat as uncertainty increases ahead of the US presidential election.

The Pound Sterling (GBP) performs mixed against its major peers on Tuesday, struggling for direction as investors await the Bank of England (BoE) Governor Andrew Bailey’s speech, who will speak at 13:25 GMT at the Bloomberg Global Regulatory Forum in New York. In his speech, Bailey is expected to provide fresh guidance on the interest-rate outlook, a key driver for the Pound Sterling’s valuation. 

In an interview with the Guardian newspaper at the start of the month, Bailey stressed the need to cut interest rates aggressively if price pressures continue to ease. He said the BoE could become "a bit more activist" and "a bit more aggressive" in its approach to lowering rates if there was further welcome news on inflation.

Meanwhile, a column written by BoE’s rate-setter Megan Greene, published in the Financial Times on Monday, indicated that the policymaker favored a gradual rate-cut approach, with doubts over whether forward consumption levels will be strong or weak.

According to market speculation, traders are confident about the BoE cutting interest rates by 25 basis points (bps) to 4.75% in November. For December, traders are also betting heavily for another 25 bps cut, Reuters reported.