The pound sterling witnessed a decline against the dollar after the release of British inflation data, which recorded a level of 3.9%, which was lower than expectations, and which reflected negatively on the pound sterling in the trading of writing this report, as this data, which came lower than the previous level, which had recorded 4.6%, Which may enhance the chances that the Bank of England will cut interest rates early next year, in light of the decline in inflationary pressures on monetary policymakers in the United Kingdom.

Note that the British pound recorded a significant rise against the dollar yesterday, as it breached the 1.2720 level, and daily trading was closed above it, due to the pressures that the dollar has been facing for some time due to the possibility of an upcoming interest rate cut.
The US dollar also recorded numbers represented by building permits, which were lower than expected, as it is a major indicator of demand in the housing market, and thus affects the strength of the dollar as well, in addition to the pressures that the dollar faces regarding lowering interest rates.
To re-evaluate these possibilities, investors will await comments later today from some monetary policymakers in the United States of America.
Technically, after the release of the British inflation data, the Relative Strength Index for the four-hour time frame fell below the 50 levels, in line with the MACD, which recorded a negative intersection with indications of a downward trend, in addition to the intersection of the moving averages with the market movement that was moving under its direction.

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