Search
00
GBAF Logo
trophy
Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

Subscribe to our newsletter

Get the latest news and updates from our team.

Global Banking & Finance Review®

Global Banking & Finance Review® - Subscribe to our newsletter

Company

    GBAF Logo
    • About Us
    • Profile
    • Privacy & Cookie Policy
    • Terms of Use
    • Contact Us
    • Advertising
    • Submit Post
    • Latest News
    • Research Reports
    • Press Release
    • Awards▾
      • About the Awards
      • Awards TimeTable
      • Submit Nominations
      • Testimonials
      • Media Room
      • Award Winners
      • FAQ
    • Magazines▾
      • Global Banking & Finance Review Magazine Issue 79
      • Global Banking & Finance Review Magazine Issue 78
      • Global Banking & Finance Review Magazine Issue 77
      • Global Banking & Finance Review Magazine Issue 76
      • Global Banking & Finance Review Magazine Issue 75
      • Global Banking & Finance Review Magazine Issue 73
      • Global Banking & Finance Review Magazine Issue 71
      • Global Banking & Finance Review Magazine Issue 70
      • Global Banking & Finance Review Magazine Issue 69
      • Global Banking & Finance Review Magazine Issue 66
    Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

    Global Banking & Finance Review® is a leading financial portal and online magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management.
    Copyright © 2010-2026 GBAF Publications Ltd - All Rights Reserved. | Sitemap | Tags | Developed By eCorpIT

    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 > Headlines > Pound holds near three-year high on trade optimism
    Headlines

    Pound holds near three-year high on trade optimism

    Published by Global Banking & Finance Review®

    Posted on May 22, 2025

    2 min read

    Last updated: January 23, 2026

    Pound holds near three-year high on trade optimism - Headlines news and analysis from Global Banking & Finance Review
    Why waste money on news and opinion when you can access them for free?

    Take advantage of our newsletter subscription and stay informed on the go!

    Subscribe

    Tags:BrexitUK economyforeign currencymonetary policyfinancial markets

    Quick Summary

    The British pound remains near a three-year high due to trade optimism and inflation data, with improved UK relations with the US and EU supporting its value.

    Pound holds near three-year high on trade optimism

    By Samuel Indyk

    LONDON (Reuters) -The British pound dipped slightly against the dollar but remained close to its highest level since 2022 reached the day before as hot inflation and improving relations with Europe and the U.S. continued to support the currency.

    The pound was last down 0.1% against the dollar at $1.3399, having touched a high of $1.3468 on Wednesday, its strongest level in over three years.

    Britain has recently looked to improve relations with the U.S. and the European Union, becoming the first nation to sign a deal with the U.S. after President Trump's reciprocal tariffs, and agreeing its biggest reset of trade and defence ties with the EU since Brexit this week.

    "The trade deals are generally good news for the pound," said ING FX strategist Francesco Pesole. "We still think the pound is in a pretty good position."

    Sterling was up 0.1% against at 84.2 pence per euro.

    A downturn in business activity for British firms eased this month, the S&P Global UK Composite Purchasing Managers' Index (PMI) showed on Thursday, as businesses grew a little cheerier about the outlook, including fewer worries about the impact of higher U.S. tariffs.

    The British currency has also been supported this week by hot inflation data, which might lower the prospect of rates cuts from the Bank of England.

    The BoE's chief economist Huw Pill said this week that a quarterly pace of cuts was "too rapid" given still strong wage pressures on inflation.

    "There's a bit of dissent building at the Bank of England," ING's Pesole noted.

    The British central bank lowered interest rates by a quarter point to 4.25% on May 8 in a three-way split vote, with two members of the Monetary Policy Committee favouring a bigger cut, and two - including Pill - preferring a hold.

    (Reporting by Samuel Indyk, editing by Ed Osmond)

    Key Takeaways

    • •The British pound is near a three-year high due to trade optimism.
    • •Improved UK relations with the US and EU support the pound.
    • •Hot inflation data may affect Bank of England's rate decisions.
    • •UK business activity shows signs of recovery.
    • •BoE faces internal dissent on interest rate cuts.

    Frequently Asked Questions about Pound holds near three-year high on trade optimism

    1What recent trend has affected the British pound's value?

    The British pound has been influenced by hot inflation data and improving trade relations with the U.S. and the European Union.

    2How did the pound perform against the dollar recently?

    The pound dipped slightly against the dollar but remained close to its highest level since 2022, trading at $1.3399.

    3What did the Bank of England's chief economist say about interest rates?

    The BoE's chief economist Huw Pill indicated that a quarterly pace of interest rate cuts was 'too rapid' due to ongoing wage pressures on inflation.

    4What is the current status of business activity in the UK?

    Business activity for British firms has shown signs of improvement, as indicated by the S&P Global UK Composite Purchasing Managers' Index (PMI).

    5What is the significance of recent trade deals for the pound?

    Recent trade deals are seen as generally positive for the pound, contributing to its strength in the currency market.

    More from Headlines

    Explore more articles in the Headlines category

    Image for Southeast Poland's Lublin and Rzeszow airports closed due to 'unplanned military activity', US FAA says
    Southeast Poland's Lublin and Rzeszow airports closed due to 'unplanned military activity', US FAA says
    Image for Exclusive-US plans initial payment towards billions owed to UN-envoy Waltz
    Exclusive-US plans initial payment towards billions owed to UN-envoy Waltz
    Image for Trump says good talks ongoing on Ukraine
    Trump says good talks ongoing on Ukraine
    Image for France to rally aid for Lebanon as it warns truce gains remain fragile
    France to rally aid for Lebanon as it warns truce gains remain fragile
    Image for Exclusive-US aims for March peace deal in Ukraine, quick elections, sources say
    Exclusive-US aims for March peace deal in Ukraine, quick elections, sources say
    Image for Ukraine's Zelenskiy calls for faster action on air defence, repairs to grid
    Ukraine's Zelenskiy calls for faster action on air defence, repairs to grid
    Image for Olympics-Italy's president takes the tram in video tribute to Milan transport
    Olympics-Italy's president takes the tram in video tribute to Milan transport
    Image for Goldman Sachs teams up with Anthropic to automate banking tasks with AI agents, CNBC reports
    Goldman Sachs teams up with Anthropic to automate banking tasks with AI agents, CNBC reports
    Image for Analysis-Hims' $49 weight-loss pill rattles investor case for cash-pay obesity market
    Analysis-Hims' $49 weight-loss pill rattles investor case for cash-pay obesity market
    Image for Big Tech's quarter in four charts: AI splurge and cloud growth
    Big Tech's quarter in four charts: AI splurge and cloud growth
    Image for Exclusive-Bangladesh PM front-runner rejects unity government offer, says his party set to win
    Exclusive-Bangladesh PM front-runner rejects unity government offer, says his party set to win
    Image for Azerbaijan issues strong protest to Russia over lawmaker's comments on Karabakh trial
    Azerbaijan issues strong protest to Russia over lawmaker's comments on Karabakh trial
    View All Headlines Posts
    Previous Headlines PostRealistic Romania 2025 budget deficit target is 7.5% of GDP, president-elect says
    Next Headlines PostSome flour reaches Gaza as blockade eases, aid groups call for more