Dollar stabilizes, sterling faces pressure as focus shifts to US ‎inflation

The dollar stabilized, while the sterling suffered losses on Thursday in weak transactions due to the holiday season and ahead of the publication of the last important data this year, which is inflation data in the United States, which is expected on Friday.

According to Reuters, the pound faced its largest decline against the dollar in two months on Wednesday after British inflation fell below expectations to 3.9 percent in October on an annual basis, the lowest level in two years.

Sterling fell 0.7% to $1.2638 amid expectations that the Bank of England will reduce interest rates by May. The pound sterling recorded its lowest level in a week on Thursday at $1.2618

Against the euro, sterling recorded its lowest level in more than 3 weeks at 86.78 pence.

Analysts expect a similar decline in personal consumption spending data in the United States, with the annual inflation rate slowing to its lowest levels since 2021 to 3.3 percent.

The yen rose by about 0.2% and recorded in its latest transactions 143.24 against the dollar after rising to 142.81 against the dollar earlier in the session, while the euro stabilized at 1.0941 dollars.

The Australian and New Zealand dollars fell slightly below the two 5-month highs they recorded on Wednesday.

In its latest transactions, the Australian dollar recorded $0.6744 after touching the highest level since July at $0.6779 on Wednesday. The New Zealand dollar was trading at 0.6251 US dollars

The dollar index stabilized at 102.40 and has declined 1% since the beginning of the year until now. The Chinese yuan fell and recorded in the latest trading 7.1469 against the dollar

Bitcoin jumped briefly and exceeded $44,000 on Wednesday, then stabilized at $43,717 on Thursday, which is slightly below the highest level in 20 months of $44,729 it reached last week.