British Pound Halts Swings Ahead of UK Data

British Pound Halts Swings Ahead of UK Data

British Pound or Sterling stabilizes at $1.36 on Monday ahead of key UK economic data, holding below its late-January peak of $1.387.

In subdued foreign exchange turnover, the dollar enjoys a firmer bias against most G10 currencies amid a broadly consolidative tone, amidst lingering US policy uncertainties.

Sterling recovered from a four-day low early Friday of approximately $1.3590 and reached almost $1.3660 in North American turnover. GBP could not get much above there today, but has not spent much time below $1.3635.

Last week’s high was a little below $1.3715, but it may require a move above $1.3730 to signal a return to the highs ($1.3870).

Headline inflation is expected to ease to 3.0% in January, the lowest since March 2025, while core inflation is seen edging down to 3.1%, a more than four-year low.

The unemployment rate is projected to remain unchanged at 5.1% in Q4, marking its highest level since early 2021, with wage growth likely moderating further.

Recent data showed the UK economy expanded by just 0.1% in Q4 2025, capping a difficult year for the economy and intensified political pressure on Prime Minister Keir Starmer.

Meanwhile, markets continue to anticipate further monetary easing from the Bank of England.

Although policymakers kept interest rates unchanged at 3.75% in a split decision, they adopted a more dovish tone, signaling that inflation is likely to move closer to the 2% target from April onward. XRP Hit by Large Sell Order in Major Crypto Exchange