GBP Strengthens, Impacted by Unexpected Data
The pound sterling (GBP) attracted strong buying interest against other major currencies after better-than-expected UK PMI data for January and Retail Sales growth returned in December. This data signals that UK economic activity remains solid, despite previous slowdowns.
The S&P Global PMI report showed strong growth in the manufacturing and services sectors. The Composite PMI jumped to 53.9 in January from 51.4 previously, well above market expectations. The Services PMI rose to 54.3, while the Manufacturing PMI also strengthened to 51.6, indicating expansion in both key economic sectors.
Furthermore, UK Retail Sales rose 0.4% month-on-month in December, defying expectations for a decline. Annually, consumer spending grew 2.5%, far exceeding market expectations. This increase ended two months of contraction and indicated that consumer purchasing power remains quite strong.
This solid economic data reduced speculation of an imminent interest rate cut by the Bank of England (BoE). With minimal significant data releases next week, the pound's movement is expected to be influenced by market sentiment and expectations regarding the Bank of England's monetary policy decision at its February meeting. (alg)
Source: Newsmaker.id
