London’s Pound Gives the U.S. Dollar a Minor Push – With the Euro Still on the Down‑Slide
The British pound has nudged up just a smidge against the U.S. dollar for three days running, shifting 0.03% higher. Meanwhile, the euro remains near its lowest point against the pound since August 2022, trading at about 0.84308.
Why the Pound Is Still Gaining — Even When the UK Economy Looks a Bit Flat
Yesterday’s gain came while most UK sectors were still underperforming, which made investors all the more eager to see what the Fed’s next move will be and when May’s CPI figures drop the curtain. The storyline? The construction, manufacturing and industrial segments shrank faster than expected in April; services, however, hit a fourth consecutive monthly rise.
Because of that, the GDP stayed the same in April, fueling speculation that a tighter Fed stance—and a “higher‑for‑longer” outlook—might wipe out the pound’s small uptick and steer it into a bearish run.
Market Forecasts: Less Likely for the Fed to Cut Rates Still Hopeful for the BoE
- U.S. markets have trimmed expectations for September and November rate cuts, thanks to the May employment surge.
- Conversely, many still bet the Bank of England will lower rates in August, even though wages are rocking high.
Numbers That Tell the Tale
As predicted, April’s GDP didn’t grow on a month‑over‑month basis but spiked 0.6% year‑on‑year. Key figures:
- Construction: –1.4% (0.9% hit)
- Industrial: –0.9% (–0.7% miss)
- Manufacturing: –1.4% (–1.1% miss)
- Services: +0.2% (beat expectations)
+0.9% for the quarter ending April (also above the mark)
U.S. CPI Outlook
Inflation is gearing toward a 3.4% annual figure, decelerating to just 0.1% from last month’s 0.3%. That’s the headline the wider market is holding onto.
Stay in the loop—subscribe for real‑time updates right on your device.
