The pound sterling fell 0.3 per cent to $1.2827 on Wednesday following weaker-than-expected UK inflation data, marking its first decline in five sessions against the dollar. The pound also weakened against the euro, with the euro/sterling rising 0.3 per cent to 85.69 pence. UK consumer price inflation rose to 2.2 per cent in July, falling short of the 2.3 per cent forecast. Services price inflation decreased to 5.2 per cent from June's 5.7 per cent, below the 5.5 per cent forecast and the lowest since June 2022. Money markets are pricing in about 46 basis points of rate cuts from the Bank of England (BoE) this year, with a 48 per cent chance of a rate cut in September. Kyle Chapman from Ballinger Group expects the BoE to pause in September and decide on further cuts in November or December. The BoE recently lowered rates from a 16-year high after a split vote among policymakers. The pound had reached a two-week high on Tuesday after data showed the UK jobless rate fell to 4.2 per cent in June. Attribution: Reuters Subediting: Y.Yasser
