Reported 10 months ago
According to KGI Futures, after the release of UK inflation data on June 17, 2024, the British pound strengthened slightly to above $1.29, remaining near a year-high. The UK's central bank maintains a 16-year high benchmark interest rate of 5.25%, with traders estimating a 50% chance of a rate cut in August. However, improving service sector consumption raises inflation risks, potentially decreasing the likelihood of a cut. Additionally, the UK GDP grew by 0.4% in May, exceeding expectations, which further supports the pound, as it suggests potential second-quarter growth that may surpass the Bank of England's forecasts.
Source: YAHOO