Pound Hits Three-Month High on Strong UK Economy and Stable Inflation
The British Pound has reached a three-month high due to positive indicators from the UK economy and stable core inflation rates. The country's GDP expanded by 0.4% between April and June, which is slower than the 0.6% growth seen in the first quarter. However, services drove the second-quarter growth, while production remained flat and construction saw an increase.
The data suggests that the economy has so far absorbed the price shocks caused by the war in Iran. Core inflation, which excludes energy, food, alcohol, and tobacco, was 2.6% in the 12 months to July, remaining unchanged from June. This stability is a positive sign for the Pound.
The GBP/USD pair is currently trading at 1.3554, up 0.14% on the day. The GBP/INR pair on the NSE quotes at 129.81, up 0.21% on the day.