The British pound gave up its gains after UK inflation unexpectedly rose in August, after British Prime Minister Theresa May rejected an improved offer from European chief negotiator Michel Barnier over the Irish border issue.
Sterling fell sharply from its daily high of 1.3214 after the CPI hit a six-month high of 2.7% and is currently trading at 1.3135 against the U.S. dollar.
The U.S. dollar is still near its 7-week low against a basket of currencies above the uptrend line on the daily timeframe we mentioned earlier, following the new round of tariff enforcement.
