The Pound has experienced a downturn in value following lower-than-expected inflation data released on Wednesday. Traders are also preparing for a significant budget statement expected later today. As a result, the Pound to Euro exchange rate retreated to 1.1965 after having tested the strong resistance level of 1.2000 the night prior. Simultaneously, the Pound to Dollar rate slipped to 1.2920 from the previous close of 1.2945.

The market’s reaction to the inflation data reflects a cautious outlook as traders recalibrate their expectations ahead of governmental fiscal decisions. As the market awaits further clarity from these upcoming announcements, volatility may persist.

Investors should stay tuned for updates related to the budget and monitor how such news impacts the currency pair in the near term. A sustained recovery above 1.2000 will be contingent on favorable economic indicators and government policies.