LONDON, June 20 Reuters The pound edged higher on Monday, breaking a threeweek losing streak versus the broadly struggling U.S. dollar as hawkish comments from policymakers supported the currency.

While the Bank of England raised interest rates by just a quarter point last week lagging more robust action from the U.S. Federal Reserve and other central banks, markets are putting a 80 chance on a halfpoint rise in July and expect almost 100 basis points of tightening by September.

The BoE39;s new message that it may have to act forcefully on interest rates is not unconditional and depends on the persistence of inflation pressures, the central bank39;s chief economist said on Friday. 

A number of factors point to pound weakness at the moment but supported Bank of England rate expectations have provided a floor for now, and the pound is stabilising at the centre of the 1.201.25 area, ING strategists said in a note.

Against the U.S. dollar, the pound is up 0.1 at 1.2236 after three consecutive weeks of losses. It fell to a March 2020 low of 1.1934 last week.

Net short pound positions fell for a third consecutive week, according to latest positioning data as some traders have cut back on their bearish pound bets.

Reporting by Saikat Chatterjee; editing by Mark Heinrich

Source Reuters