Sterling Edges Down Slightly
The British pound edged down to $1.265 after early February PMI data signaled stalled business activity for the fourth straight month, with job losses rising amid weaker sales and higher costs.
This stagnation, combined with persistent inflation, raises concerns about a stagflationary environment, posing a challenge for the Bank of England. For the week, the sterling is up around 0.5%, and hit the highest level since December 17 after a hotter-than-expected inflation print.
Meanwhile, UK retail sales exceeded all expectations, including and excluding fuel. The ONS also reported a UK budget surplus of £15.4 billion in January, falling short of the £20.3 billion estimate. GfK’s consumer confidence index remained negative, though all key metrics improved in February.
Source: Trading Economics
