FX.co ★ Sterling Climbs for 7th Straight Session

The British Pound has risen for the seventh consecutive day to $1.327, marking its longest winning streak since July, primarily due to the weakening of the US dollar. This upward trend continues despite inflation figures coming in below expectations. The headline Consumer Price Index (CPI) has decreased to a year-on-year rate of 2.6%, while services inflation has dropped to 4.7%. This alleviates some pressure on the Bank of England. Consequently, traders have marginally increased their expectations for interest rate cuts, now anticipating a total easing of 86 basis points by the end of the year. There is now a stronger likelihood of a fourth rate cut in December, as the deceleration in price growth might provide the Bank of England with the flexibility to support the economy amidst global trade uncertainties and rising household expenses.