The British pound loses trading above the 1.3 USD level

The British currency slips to a two-month low
• UK inflation falls below 2% for the first time since 2021
• Easing inflationary pressures on the Bank of England
• Rising chances of a UK interest rate cut in November

The British pound declined broadly in the European market on Wednesday against a basket of global currencies, trading below the psychological 1.3 level against the US dollar for the first time in two months. This drop was driven by key UK inflation data, which came in cooler than market expectations.

These figures indicate easing inflationary pressures on Bank of England policymakers, leading to increased expectations of at least a 25-basis-point interest rate cut in November