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A quiet week for the British pound along with some declines

27 Feb,2024
A quiet week for the British pound along with some declines

The sterling pound witnessed a decline on Tuesday against a basket of global currencies, on its way to incurring its first loss in the last 6 days against the US dollar, as the pound fell by 0.1% to ($1.2674) after it had ended Monday’s trading up by 0.1%. Against the dollar, the fifth daily gain in a row, and late last week recorded the highest level in three weeks at $1.2710.

This week, the focus is on economic data in the United States, which will play an important role in directing expectations about the future of American interest rates, as there are no important economic data in the United Kingdom that affect the re-evaluation of the possibilities related to British interest rates.
Inflation and economic growth data issued recently in the United Kingdom have led to an increase in the possibility of a reduction in British interest rates starting next May.
Bank of England Governor Andrew Bailey said last week that the central bank does not have to wait until inflation reaches the 2% target before cutting interest rates, and indicated that the British economy has already emerged from recession.

It is worth noting that this February, the Bank of England expected the inflation rate to decline briefly to 2%. However, British monetary policy makers currently need more evidence about the sustainability of the inflation slowdown in the long term before they begin cutting interest rates.‎


*All data provided is intended for educational or informational purposes only and should not be considered investment advice.

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