The pound sterling witnessed a decline on Tuesday 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 five months, after the release of data on the labor market in the United Kingdom, as the data showed a rise in the unemployment rate and stable wages. In February, which kept the possibility of lowering British interest rates next June high, pending inflation data scheduled to be released tomorrow, Wednesday.
 
Data released a short while ago in London showed that the British unemployment rate rose to 4.2% in February, exceeding market expectations for a rise to 4.0%, worse than the previous reading, a rise of 3.9% in January, in addition to average wages, which recorded a rise of 5.6% in February. Higher than economists' estimates, an increase of 5.5%, and the average recorded an increase of 5.6% in January.
 
If the data shows a continued decline in inflationary pressures on monetary policy makers at the Bank of England, the market will become more convinced of a reduction in British interest rates in June, which may lead to further losses in the levels of the pound sterling, with the loss of trading above the $1.24 barrier.
 
Bank of England Governor Andor Bailey said earlier: There are other encouraging indicators that inflation is declining, but we need more certainty that price pressures in the economy are fully under control.
 
The inflation data scheduled to be released tomorrow, Wednesday, will greatly affect the exchange rate of the pound sterling against a basket of major currencies led by the US dollar. If the data comes in cold, less than expectations, the pound’s losses will worsen.