Dollar rebounds from multi-month lows’ sterling slumps after soft inflation data

The US dollar has rebounded from recent multi-month lows, with strong economic indicators from the US boosting market confidence. This reversal suggests expectations of recovery from the previous downtrend, leading to increased demand for the dollar. Conversely, the sterling has plummeted following the release of soft inflation data, indicating that the UK economy struggles to handle inflationary pressures, which has diminished investor confidence. This negative outlook for the sterling is compounded by concerns regarding future interest rate policies, which may contribute to further downward pressure. Overall, the dollar exhibits strength against the pound, hinting that this trend may persist in the near term.