LONDON :The dollar dipped on Thursday while sterling crosses were nursing losses in holiday-thinned trade ahead of the last major data release of the year in Friday’s U.S. inflation figures.
Sterling suffered its sharpest drop on the dollar in two months on Wednesday after British inflation dived below forecasts to an annual 3.9 per cent in October, a two-year low.
The currency fell 0.7 per cent to $1.2638 as traders priced in Bank of England rate cuts as soon as May. On Thursday it hit a one-week low of $1.2613, before recovering slightly as the dollar softened. It was last at $1.2669.
Against the euro the pound hit its weakest in more than three weeks at 86.78 pence, while it was also lower against the Aussie and yen.
Analysts are forecasting a similar easing for Friday’s U.S. core personal consumption expenditure (PCE) data, with the annual inflation rate seen slowing to its lowest…