UK Economy Surges, Boosting the Pound

Daily News 20.02.024

Investors are increasingly optimistic about the British pound, anticipating data that will show the UK’s business activity outperforming other developed countries. February reports are expected to place the UK at the top, surpassing the eurozone and even the US, which has avoided economic downturns. This confidence in the US economy has previously supported the dollar. However, surveys predict a significant rise in UK business activity for February, especially in services, marking the fastest growth since last May. The pound has slightly declined against the dollar in 2024 but is recovering from earlier losses.

Interest in the pound is also driven by high interest rates in the UK, maintained to combat persistent inflation. Recent data indicates that investors have increased their bullish bets on the pound, nearing a nine-year high.