Pound Sterling Soars on Stronger Than Expected UK Growth
The Pound Sterling has continued its upward trend against several major currencies, outperforming forecasts from economists and the Bank of England. The GBP/USD exchange rate rose by 0.34% to $1.3529 on Thursday, while the GBP/EUR slipped slightly to €1.1631.
UK growth is expected to beat the MPC's forecast in Q3, with Pantheon Macroeconomics estimating quarterly GDP growth of 0.2%. This would mark a slowdown from the previous quarter but still exceed the Bank of England's 0.1% prediction.
The services PMI increased from 52.1 to 52.5, although this was below the preliminary reading of 52.8. The composite jobs balance reached its highest level since October, indicating improved employment conditions. However, underlying inflation remains a concern, with Pantheon estimating it could accelerate to approximately 4.0% on a three-month annualised basis.