Nov 25 Reuters Sterling was on track to snap a threeday losing streak on Monday, as the dollar39;s slide after the selection of fund manager Scott Bessent as U.S. Treasury Secretary lent support to most major currency pairs.

The pound firmed 0.4 to 1.2579 after slumping to a sixmonth low of 1.2475 on Friday after disappointing British business output and retail sales data raised the prospect of more aggressive interest rate cuts by the Bank of England.

BoE Deputy Governor Clare Lombardelli said on Monday she was more worried about the risk that inflation comes in higher not lower than the central bank has forecast as she made the case for only gradual reductions in interest rates.

The BoE is expected to be less dovish than the European Central Bank or the Federal Reserve in the face of stubborn inflation.

The BoE has lowered rates twice since August to 4.75, less than that ECB and the Fed. Money markets have priced in nearly 70 basis points of more BoE interest rate reductions by the end of 2025, compared with around 150 bps for the ECB and 70 bps for the Fed.

The dollar index retreated from its twoyear peak to 106.94 on Monday, consolidating after a strong run on Bessent39;s nomination for the highestranking U.S. economic position.

The news spurred bets his appointment would reduce the chance of severe tariffs and keep a lid on deficits, pressuring yields which slightly diminished the dollar39;s rate appeal.

The pound had slipped to 83.37 pence per euro from a…