One week high for GBP against USD

On Thursday, sterling slightly strengthened against a weakening dollar but declined against the euro. Investors remained focused on the Bank of England's policy direction and the economic outlook.

The Pound surged against the greenback the day following U.S. data indicating a further slowdown in services industry growth in March. Additionally, a gauge of prices paid by businesses for inputs reached a four-year low, suggesting a positive outlook for inflation and increasing the likelihood of swift rate cuts by the Fed.

On Thursday, sterling edged up by 0.05% to $1.2656 against the greenback after reaching a new one-week high at 1.2667. It declined by 0.17% against the euro to 85.79 pence per euro.

Investors also had their attention on the sterling cross against the Swiss Franc, particularly after the Swiss National Bank's surprise rate cut a couple of weeks ago.

The pound surged from 1.089 against the Swiss franc in early February to 1.1485, marking its highest level since June 2023.

Economic data released on Thursday indicated that British companies' expectations for selling prices and wage increases in the year ahead were moderating in March. However, the British economy appeared to be on track to emerge from recession.

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