MARKET OVERVIEW - The pound lost value following inflation that fell short of expectations.

The Sterling lost value after the latest inflation data released in the UK came in lower than expected. Inflation decreased from 3.0% in January to an annual rate of 2.8% in February, while economists had anticipated a figure of 2.9%. Core inflation also fell from 3.7% the previous month to 3.5% in February, contradicting predictions of stability.

Michael Brown, a strategist at Pepperstone, noted that these figures are unlikely to significantly alter the Bank of England’s policy outlook, especially after the central bank reiterated a gradual approach to future interest rate cuts. Market attention now shifts to the budget announcement by Chancellor Reeves, scheduled for 16:30 GMT. Prior to the data release, the Sterling was at $1.2942, dropping to $1.2919 afterward, while the Euro rose from £0.8334 to £0.8349.