It comes after central bank governor Andrew Bailey vowed on Wednesday to act "more forcefully" if sky-high inflation persists.
The British pound rose against the dollar and euro on Thursday as investors shrugged off official data revealing a record shortfall in the United Kingdom's current account deficit in early 2022. "As far as the UK is concerned there are so many economic headwinds; very low savings buffers by households, no meaningful fiscal support and you have the current account balance deficit expected to double this year," said Vasileios Gkionakis, head of currency strategy at Citi. Data on Thursday showed Britain racking up a record shortfall in its current account in the first three months of this year, as the deficit ballooned to 51.7 billion pounds ($62.8 billion) or 8.3% of gross domestic product.
Today, the GBP/USD found early support. We could see a reversal, however, should the US Core PCE Price Index figures increase further in May.