Pound Tumbles Amid UK Interest Rate Cut Bets, Oil Rebounds on Trump's Venezuela Moves

The British pound plummeted as weak UK inflation data fueled speculations for an interest rate cut by the Bank of England. Meanwhile, oil prices rebounded following President Trump's directive to blockade Venezuelan oil tankers. European stocks and commodities showed mixed reactions in response.

The British pound took a significant hit on Wednesday, dropping by 0.7% against the dollar. This downturn came after soft UK inflation data solidified expectations for a Bank of England interest rate cut. In contrast, oil prices experienced an uptick as U.S. President Donald Trump ordered a blockade of Venezuelan oil tankers.

European markets reflected these shifts, with the FTSE 100 climbing to a one-month high. Commodity-linked stocks, particularly in the energy sector, rose as crude prices increased and mining stocks saw gains due to record highs in silver and platinum prices.

Broader market trends were mixed, with global stock indices fluctuating. U.S. job market reports indicated rebounding growth despite a rise in unemployment, feeding into existing uncertainty about the U.S. labor market's future. Overall, investor focus remains on forthcoming economic indicators and central bank meetings.

(With inputs from agencies.)