The pound slipped against its major counterparts in the European session on Wednesday, as a sell-off in bonds paused and oil prices rose following the disruption of Russian crude exports through the Caspian Pipeline Consortium due to storm damage.
Russian oil exports via the CPC had stopped due to damage by a storm in the country’s section of the Black Sea.
The European Union is set to discuss a possible ban on Russian crude imports over its invasion of Ukraine.
U.S. President Joe Biden is traveling to Brussels to attend the NATO summit taking place on Thursday.
Biden will also join a gathering of EU leaders and the G7 Group of Nations before traveling to Poland.
Data from the Office for National Statistics showed that UK consumer price inflation rose further in February to the highest since 1992.
Consumer price inflation rose to 6.2 percent in February from 5.5 percent in January. The rate was forecast to rise moderately to 5.9 percent.
The pound depreciated to 159.03 against the yen and 1.3178 against the greenback, from its early near a 6-year high of 161.10 and near a 3-week high of 1.3298, respectively. The pound may find support around 155.00 against the yen and 1.30 against the greenback.
The pound dropped to 0.8337 against the euro and 1.2317 against the franc, reversing from a fresh 2-week high of 0.8296 and near a 4-week high 1.2420, respectively. The pound is seen finding support around 0.86 against the euro and 1.21 against the franc.
Looking ahead, U.S. new home sales for February will be published in the New York session.
Eurozone flash consumer sentiment index for March is due out at 11:00 am ET.