Sterling Climbs to Over 3-Month High

2026-08-17 09:00 By Agna Gabriel 1 min. read

The British pound strengthened to around $1.355, its highest level in more than three months, as investors positioned ahead of a busy week of UK economic data.

Markets will first focus on labour market figures due Tuesday, followed by inflation data on Wednesday.

Headline inflation is expected to accelerate to a four-month high, although the core rate may ease.

Markets are currently fully pricing in a 25-basis-point BoE rate increase in December, with further moves dependent on the inflation trajectory.

The central bank left rates unchanged in July, while Governor Andrew Bailey said the disinflation process remained on track despite persistent external risks.

However, the prolonged conflict in the Middle East could keep energy prices elevated and add to inflationary pressures.

Meanwhile, expectations for a September Federal Reserve rate hike continue to decline.



News Stream
Sterling Climbs to Over 3-Month High
The British pound strengthened to around $1.355, its highest level in more than three months, as investors positioned ahead of a busy week of UK economic data. Markets will first focus on labour market figures due Tuesday, followed by inflation data on Wednesday. Headline inflation is expected to accelerate to a four-month high, although the core rate may ease. Markets are currently fully pricing in a 25-basis-point BoE rate increase in December, with further moves dependent on the inflation trajectory. The central bank left rates unchanged in July, while Governor Andrew Bailey said the disinflation process remained on track despite persistent external risks. However, the prolonged conflict in the Middle East could keep energy prices elevated and add to inflationary pressures. Meanwhile, expectations for a September Federal Reserve rate hike continue to decline.
2026-08-17
British Pound Hits 4-week High
GBPUSD increased to 1.35, the highest since July 2026. Over the past 4 weeks, British Pound US Dollar gained 0.02%, and in the last 12 months, it decreased 0.02%.
2026-08-14
Sterling Falls on Thursday
The British pound eased below $1.35, as investors balanced resilient UK economic data against persistent geopolitical uncertainty in the Middle East. UK GDP expanded 0.4% quarter-on-quarter in the second quarter, matching economists’ expectations and following 0.6% growth in the first quarter. June activity was stronger than anticipated, with monthly GDP rising 0.3%. However, household consumption growth slowed to 0.2%, highlighting continued pressure on consumers. Meanwhile, negotiations aimed at ending the US-Iran conflict and reopening the Strait of Hormuz remained stalled, with shipping disruptions and attacks continuing to weigh on sentiment. The Bank of England left interest rates unchanged in July, with Governor Andrew Bailey saying disinflation remained on track despite persistent external risks.
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