LONDON, July 29 Reuters The pound fell to its lowest level in two weeks on Monday as investors looked ahead to the Bank of England39;s interest rate decision on Thursday and a key speech by British Finance Minister Rachel Reeves later in the day.

Sterling was last down 0.25 at 1.2834 after falling to 1.2807 earlier in the session, the lowest since July 10.

The euro rose against the pound , up 0.11 at 84.46 pence, after hitting a twoweek high of 84.59.

Traders increased their wagers on BoE rate cuts and were pricing in an almost 60 chance of a reduction on Thursday, up from just over 50 late on Friday, according to derivative market pricing.

The shift in rate expectations pulled British bond yields lower, weighing on the pound.

The pricing of the Bank of England rate cut continues to creep higher, said Francesco Pesole, FX strategist at lender ING. The FX market may be catching up a little bit with bond markets… There39;s a bit of prepositioning.

Pesole said Britain39;s relatively high interest rates have pulled money towards the pound but that advantage could be cut quite substantially if the BoE lowers borrowing costs.

Investors were also waiting for a speech by Chancellor Rachel Reeves later on Monday, in which she will accuse the former Conservative government of leaving a shortfall in the public finances of around 20 billion pounds 26 billion.

Neil Jones, a senior FX salesperson at TJM Europe, said sterling39;s fall reflected investor nerves about…