British Pound Steady as Traders Eye Key UK Inflations Data

The British pound remained stable against the dollar on Tuesday, continuing Monday’s gains, as traders looked forward to the UK inflation data and the Bank of England meeting. Sterling held at $1.3224, rising 3.85% this year. Markets anticipate key decisions from both the BoE and the Federal Reserve this week.

The British pound remained steady against the dollar on Tuesday, holding onto Monday's gains. Traders are awaiting UK inflation data, a crucial Bank of England meeting, and the anticipated start of a U.S. easing cycle this week.

Sterling was slightly positive for the day, trading at $1.3224, after having risen 0.7% on Monday. The pound has gained 3.85% against the dollar so far this year, aiming for a second straight year of growth.

Analysts at Lloyds Bank noted that 'signs of a bolder Fed easing path could extend this trend, influencing the BoE's consideration of exchange rate strength on inflation.' While the Bank of England is not expected to change interest rates on Thursday following last month's 25-basis-point cut, futures markets suggest a 38% chance of another quarter-point cut. The week will culminate with closely watched UK inflation figures, crucial after recent economic stagnation data.

(With inputs from agencies.)