GBP is rising steadily. Overview for 25.01.2024

The British pound sterling is gradually strengthening against the US dollar. The current GBPUSD exchange rate stands at 1.2720.

The statistics from yesterday indicate that business activity in the UK is the leading in Europe. This provides another argument in favour of the Bank of England maintaining high interest rates in the country for an extended period.

For example, the CIPS UK Composite PMI indicator, which consolidates data from manufacturing and non-manufacturing sectors, increased to 52.5 points in January. This is the highest in the last seven months. In December, the index stood at 52.1 points, while the forecast had predicted a rise to 52.2 points.

The Bank of England will meet next week to discuss the interest rate. Most likely, there will be no changes. The regulator's comments on inflation, consumer spending, the December decline in retail sales, and global prospects are critical.

As long as BoE's interest rate remains high, the pound's position will remain strong.