The British pound cut early losses to approach $1.32, as latest inflation figures for the UK raised bets the BoE will cut interest rates later in the year. Annual inflation remains at 2.2%, in line with expectations, while services inflation has climbed to 5.6% as predicted.

Core inflation has also increased to 3.6%, exceeding forecasts of 3.5%. Both services inflation and the headline rate are below the levels projected by the central bank in August. he Bank of England is anticipated to maintain interest rates this week, though traders are pricing in cuts for November and December, followed by five more in 2025. The easing cycle began in August when the central bank reduced borrowing costs by 25bps.

Source : Trading Economics