LONDON, Aug 1 Reuters Sterling rose towards a onemonth high on Monday as an upbeat mood on broader financial markets helped the British pound and as traders prepared for a Bank of England policy meeting this week at which it is expected to again raise rates.

Investors have shifted to pricing in an 80 chance of a 50 basis point bps hike from the BoE, which will announce its decision on Thursday, as policymakers globally accelerate the pace of rate rises to fight soaring inflation.

The pound was little moved by survey data on Monday showing British manufacturing output and new orders declined in July at the fastest rate since May 2020, with expectations for a slowing economy priced in by many traders.

By 0830 GMT, sterling was 0.2 higher against the dollar at 1.2206, close to a onemonth high of 1.2245 reached on Friday.

Against the euro sterling inched up 0.1 to 83.87 near a threemonth high of 83.46 touched on Thursday.

Expect a bit of a waitandsee approach in GBP price action heading into Thursday39;s Bank of England rate announcement. A look at rate expectations shows that the market is now fully pricing in a 50bp move, which is also our basecase scenario, ING analysts said.

Still, we see a nonnegligible risk of some pushback against the markets hawkish pricing, which could trigger some weakness in the pound

The pound has struggled versus the dollar in recent months, although its moves have mostly been driven by dollarspecific developments, such as a rush for…