The English pound marked a third-straight day of gains against its cross-Atlantic rival on Tuesday after consumer price index data fell short of forecasts by economists, Bloomberg reports.
The monetary unit kicked off the trade session with gains, but that performance reversed once the data from last month was released. Minutes from the most recent policy meeting of the Bank of England are set for release on Wednesday.
"U.K. policy makers have suggested that the recent rise in yields that was influenced by the Fed's policy was probably unwarranted, and the inflation data today rubber stamped that," fixed-income strategist John Wraith with Bank of America Merrill Lynch in London told the news source on Tuesday. "There is much less reason to think monetary conditions should be tightening. Data like this should support short-dated gilts."
The pound dropped as much as 0.2 percent against the greenback on Tuesday after having notched gains as high as 0.3 percent earlier during the trade session.
The Bank of England is determining the next steps of its economic recovery and the inflation data is likely to be a factor, according to Future Currency Forecast.
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