GBPUSD Rebounds to $1.26 Amid Weak UK Data
After GBP/USD declined to its lowest point this month, the British pound has bounced back, approaching $1.273. However, investors remain cautious due to concerns about the possible impact of Donald Trump’s policies after he goes to the white house.
Trump has renewed his threats to raise tariffs, suggesting a 10% increase on Chinese goods and a 25% hike on imports from Mexico and Canada.
In the UK, disappointing economic data has led to speculation that the Bank of England might cut interest rates. Retail sales dropped by 0.7% in October, more than analysts expected. Early business activity indicators, flash PMIs, also came in lower than forecasts, indicating a slight decline in November.
On the inflation front, the annual rate rose to 2.3% in October from 1.7% in September, reaching a six-month high. This figure exceeded the Bank of England’s target and market expectations of 2.2%. Despite these mixed signals, most analysts believe the Bank of England will keep interest rates the same in December.
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