Proactive Investors - The pound has slipped after the strong inflation figures boosted hopes that interest rates have peaked and brought forward expectations for the first rate cut.
Craig Erlam at Oanda said if we continue to see this over the coming months, especially if paired with similar trends in monthly wage growth, that first rate cut from the BoE could come earlier than many expect.
Sterling was down 0.3% against the dollar at $1.2463 with Joshua Raymond at XTB noting the pound lost ground against every major currency.
He said while by no means a major currency move, it does show is that investors are convinced the Bank of England has finished hiking rates and they are starting to feel that the first interest rate cut, which he put at August 2024 - is now more likely.
He pointed out this is the third consecutive month that UK inflation data has not disappointed and it comes hot on the heels of better than expected US inflation data yesterday.