The British Pound rose against the US Dollar on Friday following more benign inflation data out of the world’s largest economy and some surprise growth at home.
US price rises eased for a sixth straight month in December according to official data released on Thursday. This has traders and investors more sure than ever that the bulk of interest rate rises are now behind them and that, although there will likely be more, the pace will slow. This view contrasts with that of many other developed economies, especially those more exposed to price rises linked to the war in Ukraine, notably the Eurozone. There, rates are thought to have further to rise, and both the single currency and Sterling rose after the US Data.
