POUND LINGERS AT 3-WEEK LOW; UK RETAIL SALES AWAITED

Published on Mar 22, 2024 11:15

UK Pound is lingering at its lowest level in three-weeks on Friday morning in Asia after BoE left interest rates unchanged at its monetary policy meet yesterday. Pound tumbled sharply yesterday, losing grasp over $1.27 mark and ended at $1.2663. The Bank of England held its key interest rate at a 16-year high of 5.25%, opting against a reduction as inflation remains elevated despite recent slowdowns. The BoE kept the rate steady for a fifth meeting in a row. Meanwhile, data earlier in the day showed consumer confidence remains weak in the U.K. amid continued concerns over the economy, according to a survey published Friday. Research group GfK`s consumer confidence barometer was unchanged in March at minus 21. Focus now shifts to UK retail sales for fresh cues. Currently, GBPUSD pair is trading at $1.2649, extending further losses from previous session. Meanwhile, massive strength in dollar overseas is also adding pressure on the pair. Sharp surge in dollar came on the back of strong labor market data and as SNB cut rates even as Fed is expected to keep rates unchanged for some time. The dollar index is currently quoting at 103.88, up 0.21% on the day. On the NSE, GBPINR is trading lower by 0.65% at 105.41.