Sterling Surges Amid BoE Rate Cut and Upbeat Economic Data
Sterling climbed against a weakening dollar, poised to end the week stronger following positive economic data and a hawkish rate cut by the Bank of England. While inflation remains high, this rate cut and recent economic developments might influence the UK currency's future trajectory.
The British pound strengthened against a declining US dollar on Friday, set to conclude the week on a high note bolstered by positive economic indicators and a hawkish rate cut from the Bank of England.
Sterling appreciated by 0.15% to $1.3549, marking an 8.5% gain against the dollar this year and nearing a session peak of $1.3594—its highest since July. Meanwhile, the dollar weakened as uncertainty loomed over upcoming import price data.
BlueBay Asset Management's CIO, Mark Dowding, maintained a cautious outlook on UK assets, citing valuation concerns, although he noted the pound's recent performance in light of fading hopes for more BoE rate cuts. Inflation remains at 4% amid slow growth, with the BoE's narrow rate cut vote reflecting potential caution ahead.
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- Sterling
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- UK economy
- Bank of England
- rate cut
- inflation
- GBP
- exchange rate
- UK currency
- UK assets
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