The British pound has shown resilience against the dollar, even in thin holiday trading sessions of 2024. As of Monday, sterling gained 0.1%, standing at $1.2595. Despite losing 1% since the Federal Reserve's December 18 policy meeting, the pound has rebounded by nearly 0.5% in the past week.
In the year 2024, the British pound, commonly referred to as sterling, has distinguished itself as the strongest currency among the G10 group when measured against the US dollar. This notable performance can be attributed primarily to the widespread anticipation of a gradual and measured approach to rate cuts by the Bank of England (BoE). While other central banks around the world have taken more aggressive action in response to economic conditions, the BoE has chosen to adopt a more cautious stance. This careful strategy is largely influenced by the ongoing challenge of persistent inflation levels within the United Kingdom, which have remained high and necessitate a more conservative outlook from the central bank.
British inflation reached an eight-month high in November. However, services price inflation, a key focus for the BoE, has remained steady. This stability provides slight relief for policymakers, although traders wonder how long the BoE can maintain its current stance amid a slowing economy.
The UK economy faces significant challenges as Prime Minister Keir Starmer urges regulators to reduce growth barriers. Analysts from J.P. Morgan caution that sterling’s remarkable outperformance in 2024 is unlikely to repeat in 2025. Meanwhile, the euro remains stable against the pound, trading at 82.89 pence. Still, sterling has gained over 4% against the euro this year.
For more Forex trading insights and analysis about Sterling performance in 2024, explore our website: Stay updated with the latest trends.
Discover why sterling outperformed all G10 currencies in 2024. Learn about inflation pressures and the Bank of England’s cautious stance.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)