The Pound edged up slightly against the Dollar on Wednesday, paring gains made previously in the session, as governor of the Bank of England (BoE), Andrew Bailey, said no further rate hike decision had been made.

Sterling was 0.1% up against the greenback by 11:30 GMT at $1.20310, after trading 0.6% higher before the BoE governor’s comments. Furthermore, the Pound fell to a one-week low against the Euro, down 0.72% at 88.615 pence.

Bailey warned against the idea that either the Bank of England has ended its rate hiking cycle or that it will likely have to take more action, Reuters reports.

The governor’s comments led traders to reduce their bets on the probability of a 25-basis point hike on the 23rd March meeting. That said, this is still viewed as the most probable scenario.

“I am surprised that markets are reading so much into it, though it’s probably exaggerated by the fact that we’ve had such a good move in Sterling through the course of the week so far,” said Adam Cole, head of FX strategy at RBC Capital Markets.

Cole added that the Pound was bolstered by news of the deal with the European Union over Northern Ireland, which saw the Sterling register its largest daily gain against the Dollar in six weeks on Monday.

Speaking before the Northern Ireland deal was reached, deVere CEO and founder Nigel Green commented: “Since Brexit, the Pound has been out of favour with FX traders, with the UK currency falling nearly 18% against a basket of currencies since the referendum.

“It has also been dragged down in recent months by fears over slowing economic growth and multi-decades high inflation,” he said.

However, a deal “could help traders move past peak pessimism regarding the UK, as it would likely help encourage a broader and healthier relationship with the EU which would boost economic performance.”