GBP has appreciated noticeably. Overview for 27.02.2024

The British pound sterling, paired with the US dollar, continues its rise. The current GBPUSD exchange rate stands at 1.2682.

According to fresh statistics, inflation in UK stores has dropped to a two-year low. Observations by the BRC indicate that the index rose by 2.5% in February, marking the lowest figure since March 2022.

Simultaneously, the BRC identifies relatively high tax rates and delivery chaos for groceries and goods as critical risks for the sector.

Following the challenges of December 2023, massive in-store discounts have bolstered retail sales recovery in January. At the same time, UK businesses are expressing the highest level of optimism in two years, thanks to the stabilisation of household incomes.

Such news provides solid support for the pound.

Furthermore, investors are leveraging the local weakening of the US dollar to bolster GBP.