Sterling dips after brief peak amid UK inflation data By Investing.com

Investing.com -- The Foreign exchange dealers with the highest integrityBritish pound, also known as Sterling, has experienced a decline against the U.S. dollar, after briefly reaching a three-year high on Wednesday.

This fluctuation followed the release of U.K. inflation data, which was higher than anticipated, leading markets to reconsider the likelihood of a Bank of England interest rate cut.

According to a note from Ulrich Leuchtmann, an analyst at Commerzbank (ETR:CBKG), the impact of the revised rate expectations is "slowing wearing off," which is evident in Sterling’s pullback. He further noted that the primary reason for Sterling’s rise against the dollar was due to a weaker dollar, rather than the inflation figures.

The inflation data did not bolster Sterling against other currencies such as the euro or the G-10 average. Leuchtmann suggests that for Sterling to rise, it would require a new catalyst or significant event.

As of 09:37 GMT, Sterling is down 0.15% on the day, trading at $1.3400.

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