The sterling pound witnessed a decline today, Wednesday, against a basket of global currencies, deepening its losses for the third day in a row against the US dollar, recording the lowest level in a week, after the release of inflation data in the United Kingdom, where consumer price numbers came in lower than market expectations in January by a percentage. 4.0%, less than expectations of 4.1%.

Consumer price data that recorded lower-than-expected numbers may work to reduce concerns about escalating inflationary pressures again on monetary policy makers at the Bank of England, which may enhance the possibilities of lowering British interest rates next May.

The sterling pound fell against the dollar by 0.3%, the lowest in a week, after the pound ended Tuesday’s trading down by 0.3% against the dollar, the second daily loss in a row, after the release of data that was higher than market expectations for consumer prices in the United States and increased the strength of the US. 

The release of positive economic data in the United Kingdom, represented by government data issued yesterday, Tuesday, about the number of applications for unemployment aid in Britain, it has increased by about 14.1 thousand applications in the month of January, compared to expectations of a reading of 15.2 thousand applications. PluThe unemployment rate in the British labor market decreased to 3.8% last month, compared to expectations of a decrease to 4% from 4.2% in the previous reading but the pound did not benefit from this data with the strength of the dollar and British inflation data.

Noting that the pound sterling is receiving data that is considered very important this week, represented by Britain’s gross domestic product, which according to expectations will record a lower reading than the previous one. Therefore, this may lead to the currency continuing its downward trend and downward movement, but if it is recorded higher than expectations, it may cause positive support for the currency.

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