What recent data has affected the pound's value?

The recent UK inflation print showed consumer inflation rose faster than expected in January, complicating the outlook for the Bank of England.

What are traders anticipating from the Bank of England?

Traders are currently betting on two more rate cuts in 2025 from the Bank of England, although inflation trends may delay these cuts.

When is the next Bank of England meeting scheduled?

The Bank of England's next meeting is scheduled for March 20.

Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Finance > Sterling edges up as investors await data

Finance

Sterling edges up as investors await data

Q: How is the pound affected by global factors?

The pound's sensitivity to global risk appetite will keep traders vigilant amidst geopolitical uncertainties, influencing its value.

Published by Global Banking & Finance Review®

Posted on February 20, 2025

2 min read

Last updated: January 26, 2026

Pound sterling rises as investors await key UK economic data - Global Banking & Finance Review — The image illustrates the slight rise of the pound sterling against the dollar, reflecting investor anticipation of key UK economic data, crucial for monetary policy insights.

Pound Gains Slightly as Investors Anticipate Key UK Economic Data

LONDON (Reuters) - The pound edged up on Thursday, as traders awaited UK data on consumer spending and business activity after this week's hot inflation print complicated the outlook for Bank of England monetary policy.

Sterling was last at $1.261, up 0.2% against the dollar by 1108 GMT. Against the euro it was unchanged at 82.795 pence.

Wednesday's UK inflation print showed consumer inflation rose faster than expected in January, which could weaken the case for the BoE to deliver another two rate cuts this year.

Traders are currently betting on two more rate cuts in 2025 from the BoE.

"Leading indicators suggest inflation will stay high in the UK, and growth may surprise positively. These factors could delay gradual rate cuts but won’t change the overall view of a slow disinflationary process," George Vessey, lead FX and macro strategist at Convera, wrote in a note.

The Office for National Statistics said its consumer price index rose at an annual rate of 3% in January, above forecasts for a rise of 2.8%. Services inflation, which the BoE has flagged as an obstacle, rose at a rate of 5%, from 4.4% in December, but was below expectations for rise of 5.2%.

The BoE's next meeting is still a month away, set for March 20.

Market players will be closely monitoring UK retail sales figures and preliminary business activity surveys data, both due on Friday, for a read on the strength of the economy. They will follow Tuesday's jobs data that showed accelerating wage growth and last week's GDP figures that showed Britain's economy unexpectedly grew by 0.1% in the final three months of last year.

"In addition to rate differentials supporting the pound, its sensitivity to global risk appetite will keep traders vigilant amidst geopolitical uncertainties. However, the UK is currently out of Trump’s tariff line, providing sterling an advantage over the euro," said Vessey.

(Reporting by Lucy Raitano; Editing by Emelia Sithole-Matarise)

Sterling edges up as investors await data

Quick Summary

Pound Gains Slightly as Investors Anticipate Key UK Economic Data

Key Takeaways

Frequently Asked Questions about Sterling edges up as investors await data