The sterling-dollar currency pair fell during trading on Wednesday, reaching its lowest levels in more than 3 months, immediately after the release of inflation data in Britain last August, which affected the markets’ expectations regarding the Bank of England’s upcoming moves regarding the course of monetary policy.
In this regard, the data issued on Wednesday morning revealed a slowdown in general inflation in Britain for the month of August, recording 6.7%, less than market expectations that suggested an acceleration of inflation in the country to 7.0%. It was also lower than the previous inflation reading recorded in July, which settled at 6.8. %.
Core inflation also slowed strongly over the same period; Recording the equivalent of 6.2% after core inflation stabilized at 6.9% last July.
These negative developments have strengthened the downward momentum of the sterling dollar's movements with growing market expectations regarding the Bank of England stabilizing interest rates during the post-September meetings, in response to the possibility that inflation will continue to slow.
As a result of these expectations, the sterling-dollar pair fell by about 0.34% to settle near the $1.2350 level.