The Pound Sterling is experiencing gains against both the Euro and US Dollar following stronger-than-expected inflation data in the UK, with core inflation rising to 3.6% in August. This has raised expectations that the Bank of England will maintain its interest rate at 5% in the upcoming meeting, although speculation remains about possible cuts in November and December. Meanwhile, the Euro is under pressure as investors anticipate eurozone inflation data, while the German ZEW economic sentiment shows a sharp decline, suggesting a deteriorating economic outlook in the region. In the US, the Federal Reserve is expected to announce its first interest rate cut in over four years, with a split among analysts regarding the magnitude of the cut, as concerns about the labor market and a potential recession loom. The upcoming Fed decision has led to increased volatility in the Dollar, which is trading near multi-year lows. Overall, the combination of UK inflation data and the Fed's impending monetary policy shifts are significantly impacting currency movements.