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Sterling falls for second straight day with British inflation report in focus
British pound fell on European markets on Wednesday against a basket of global currencies, continuing losses for the second day in a row against the US dollar, on correction and profit taking from the highest level in five weeks, in addition to the recovery of the US currency levels, with investors' anticipation of an important hearing in the British parliament on the quarterly inflation report issued by the central bank.
As of 07:57 GMT, sterling fell by 0.1% to trade at $1.2673, from the opening price of $1.2685, with the highest at $1.2696 and the lowest at $1.2662.
Yesterday, the pound lost 0.4% against the dollar, its first loss in six days, on correction and profit taking, after hitting a five-week high of $1.2783 earlier in the trading session.
Sterling gained 1.2% over the past week against the US dollar, its second weekly gain in the past three weeks, taking advantage of the decline of the US currency against most major and minor currencies following the US Fed meeting.
The dollar index rose 0.1% on Wednesday, continuing its rebound for the second day in a row from a three-month low, reflecting the recovery of the US currency against a basket of currencies.
The recovery is supported by the Federal Reserve Chairman Jerome Powell confirmation on Tuesday on the central bank's independence from US President Donald Trump, which is pushing for big rate cuts.
On the other hand, the royal currency is weighing the odds for the victory of Boris Johnson, to head the British government, to succeed Theresa May, who resigned from her post on June 7.
Boris is currently the most likely candidate in the final round of Conservative Party votes against his rival foreign minister Jeremy Hunt. as Boris is counting on the country's rapid separation from the EU before Oct. 31, even if it is without any agreement.
An important hearing in the British Parliament on the quarterly inflation report will begin at 09:15 GMT, with Governor Mark Carney and several members of the MPC giving testimony on inflation and economic prospects before the Treasury Committee.
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