The British pound is near a 3-month peak ahead of British inflation data

The pound sterling rose in the European market on Wednesday against a basket of global currencies, resuming its gains that were temporarily halted yesterday against the US dollar, once again approaching touching the highest level in three months, benefiting from the decline in the levels of the US currency ahead of the release of the minutes of the last meeting of the Federal Reserve Board.

Mixed data on the UK labor market has made the Bank of England less likely to raise rates

British interest rates next September, and in order to reprice these possibilities, investors are awaiting later today the release of important data on British inflation levels for the month of July.

This decline comes as investors' focus shifts towards evaluating the future path of US interest rates, especially after the decline in the odds of raising them during the current year, following the release of data showing a slowdown in inflation in the United States to levels below market expectations.

In conjunction with the issuance of worrying indicators of a slowdown in the American labor market.

British inflation data In order to reprice the existing possibilities around British interest rates, investors await later today the release of the main inflation data in the United Kingdom for July, which is expected to greatly influence the course of the Bank of England’s monetary policy.

The expected overall CPI will be released at 06:00 GMT

Up 2.9% y/y in July from a 2.6% rise in June, with core CPI falling to 2.5% y/y from a 2.6% rise in June.

Expectations about the performance of the British pound: We expect here on the “FX News Today” website: If British inflation data comes in higher than market expectations, the possibilities of raising British interest rates this year will increase, which will be in favor of a further rise in the pound’s levels.

Sterling.