The pound sterling continues to suffer losses for the second day against the dollar due to the decline in the possibility of lowering US interest rates early this year and the anticipation of US inflation data tomorrow, in addition to awaiting the testimony of the Governor of England on the financial stability report in the country.

The pound fell against the dollar by 0.2% in today's trading, as it had ended yesterday's trading Tuesday with a decline of 0.3% against the dollar.

The pound competes with the US dollar with its strong performance in the first week of the current year, supported by lower expectations for a reduction in interest rates from the Bank of England, with Purchasing Managers’ Index data for December indicating a return to growth in the economy, reducing the need for an early cut in interest rates. However, there is anticipation for the statements of Andrew Bailey, Governor of the Bank of England, about financial stability, which is expected to address the future path of monetary policy and interest rates.

As for the dollar, there is a noticeable recovery and improvement in the currency’s condition with the release of economic data that supports the dollar’s recovery against a basket of global and major currencies, and anticipation of the inflation data that will be issued tomorrow, which is expected to witness a rise in inflation from 3.1% to 3.2%.

Regarding the technical indicators, the Relative Strength Index is currently moving at 50, and the MACD is moving above zero. Still, in a downward direction currently, but in general, the indicators show the continuation of the lateral movement of the pound against the dollar for this day, according to the period of the indicators, which is four hours.

*All data provided is intended for educational or informational purposes only and should not be considered investment advice.