Sterling was on track for its first weekly decline against the Dollar in more than a month on Friday, as expectations of a Bank of England rate hike later this year weakened ahead of the key Federal Reserve symposium in Jackson Hole.

The Pound fell around 0.1% to $1.3582, its lowest level in over a week, putting it on course for a 0.4% weekly loss. Against the Euro, Sterling was broadly unchanged, with the Euro set for a 0.1% weekly gain at 85.69 pence.

Sterling’s losses this week have been largely driven by a stronger Dollar, which has recovered some of its recent declines. The Pound has also come under pressure as investors scaled back expectations for a Bank of England rate hike this year, while the ongoing conflict in the Middle East has kept energy prices elevated.

Markets are now pricing in around 25 basis points of BoE rate increases by December, according to LSEG data, down from roughly 30 basis points expected just over a week ago.

They are also watching closely for any signals on the fiscal agenda of Britain’s new Andy Burnham-led government as parliament prepares to reconvene next week.

The wider budget is expected to be unveiled in October, with growing concerns over the country’s fiscal position adding to market uncertainty.

Defence spending is expected to be a major focus of Britain’s fiscal plans, as European governments face mounting pressure to increase their own defence budgets and reduce reliance on the United States.

Tensions have also risen after Russia warned on Thursday that it could target British military assets both inside and outside Ukraine in response to Ukrainian strikes on Russian territory using British-made long-range cruise missiles.

Attention now turns to the Jackson Hole economic symposium in Wyoming, where investors will be watching closely for comments from Fed Chair Kevin Warsh on the future direction of US monetary policy.

Warsh may use his Jackson Hole speech to offer an early glimpse into the findings of the Fed’s five task forces, which are examining communications, the central bank’s balance sheet, economic data, productivity and employment, and its inflation framework, Reuters reports.

The Chair set up the five task forces to examine the Federal Reserve’s operations at the beginning of his term, saying their findings would play a key role in shaping his plans for the central bank going forward.