Sterling Stretches Losses due to UK Economic Data Shortage

The pound sterling came at the top of the list of the most losing currencies, on the sidelines of the global currency market on Thursday.

The pound sterling was subjected to many pressures that pushed it to incur losses of 4.01% against the other seven foreign currencies, affected by the negative data of the UK CPI last June, as inflation slowed down and reached 7.9% on an annual basis, compared to expectations of 8.2%.

Inflation data came lower than the previous reading, as inflation recorded about 8.7% last May, and this data reinforced concerns about the possibility that the Bank of England will not continue to tighten its monetary policy, which negatively affected the trading of the pound sterling today.

The pound was followed by the Swiss franc in second place, and then the US dollar in third place in the list of the most losing currencies, while the euro ended the losing list in fourth and final place.

The Swiss franc witnessed clear losses in the list of the highest-losing currencies by up to 1.33%, amid improved risk appetite in the currency market today to increase investors’ appetite for high-risk currencies, which reinforced the losses of the Swiss franc against its counterparts from other currencies, as it is considered a safe currency.

Also, the US dollar came in third place on the list of the most losing currencies, recording losses of 1.30%, in light of the increasing market speculation about the possibility of the US Federal Reserve to stop hiking rates.

"The GBP/EUR exchange rate was trading at around €1.15368, having recovered some of the day's losses," according to exchange rates.

"The GBP/USD was trading at $1.28485, a 0.69% decline on the day."