LONDON, July 10 Reuters The pound held near onemonth highs on Wednesday, supported by the belief among investors that U.S. interest rates are set to fall sooner than many had predicted, which dented the dollar.

Two Bank of England policymakers speak later in the day, which may offer the pound more nearterm direction.

BoE chief economist Huw Pill and Monetary Policy Committee member Catherine Mann speak at separate events.

The main driver for the sterlingdollar pair on Wednesday came from the dollar side, after Federal Reserve Chair Jerome Powell told lawmakers at his semiannual testimony the day before that the U.S. is no longer an overheated economy.

Powell said he did not want to send any signals about the timing of a possible rate action, but investors took his remarks as a sign the central bank is edging closer to its first cut since 2020.

Sterling was last up 0.16 at 1.2807, having hit a session peak of 1.28455 on Monday, its highest since June 12. It is up 0.4 weekonweek and has gained 1.2 so far in July.

Futures markets show traders are placing a 60 chance of a rate cut at the Bank of England39;s meeting on Aug. 1, with a cut in September fully priced in.

As far as sterling is concerned, following the Labour party39;s widely expected landslide victory in last week39;s general election, the focus is squarely back on monetary policy, rather than politics.

Thursday39;s macro calendar includes a reading of economic growth for the three months to May, while next…