# Sterling drops on Bailey remarks and shift to safe havens

> Sterling fell up to about 1% against the dollar and was on track for its biggest daily drop in nearly two years versus the euro, as investors moved into safe-haven assets. Bank of England Governor Andrew Bailey said the BoE could become "a bit more activist" on rate cuts if inflation news keeps improving.

- Date: 2024-10-03 · published 2024-10-03T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/28094-sterling-drops-on-bailey-remarks-and-shift-to-safe-havens
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Sterling weakness against the dollar makes US-dollar-priced feed imports into the UK costlier in pound terms, while a dovish BoE tilt signals lower UK rates. The effect on grain and oilseed prices is indirect.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-11-17 | [Dollar rises with bets on hawkish Fed; sterling drops \| Reuters](https://feedsoft.ai/events/38594-dollar-rises-with-bets-on-hawkish-fed-sterling-drops-reuters.md) | +0.4% | -0.6% |
| DXY | 2021-09-28 | [Sterling drops more than 1%](https://feedsoft.ai/events/45308-sterling-drops-more-than-1.md) | +0.5% | -0.1% |
| DXY | 2020-09-23 | [Currencies slip as dollar gains on safe-haven demand, rand drops 1% \| Financial Post](https://feedsoft.ai/events/51393-currencies-slip-as-dollar-gains-on-safe-haven-demand-rand-drops-1-financial-post.md) | +0.8% | -1.4% |
| DXY | 2016-11-30 | [USD JPY breaks out to new highs as dollar surges and safe havens suffer](https://feedsoft.ai/events/74086-usd-jpy-breaks-out-to-new-highs-as-dollar-surges-and-safe-havens-suffer.md) | -0.6% | +1.3% |
| DXY | 2026-01-30 | [Sterling drops as dollar lifted by Fed chair speculation \| Reuters](https://feedsoft.ai/events/21298-sterling-drops-as-dollar-lifted-by-fed-chair-speculation-reuters.md) | +0.9% | +0.3% |
| EURUSD | 2021-09-28 | [Sterling drops more than 1%](https://feedsoft.ai/events/45308-sterling-drops-more-than-1.md) | -0.7% | -1.0% |
| EURUSD | 2021-01-29 | [Safe-haven dollar looks to end week strong as market jitters persist - Markets - Business Recorder](https://feedsoft.ai/events/49396-safe-haven-dollar-looks-to-end-week-strong-as-market-jitters-persist-markets.md) | -1.2% | -0.2% |
| EURUSD | 2020-10-18 | [Sterling and Yuan Resilience, While Rate Differentials Aid Dollar?  - Marc to Market  Marc Chandler on Global FX and Capital Markets](https://feedsoft.ai/events/50814-sterling-and-yuan-resilience-while-rate-differentials-aid-dollar-marc-to-market.md) | +1.1% | +1.1% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/sterling-drops-bailey-remarks-shift-safe-havens-2024-10-03/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.