GBP is confined within a range. Overview for 14.03.2024

The British pound sterling, paired with the US dollar, is holding its ground. The current exchange rate for GBPUSD stands at 1.2794.

Earlier published data indicated a 0.2% m/m increase in the UK's GDP for January but a 0.3% y/y decrease, as expected.

The country's industrial production volume decreased by 0.2% month-on-month in January. The indicator rose by 0.5% year-on-year but fell short of the forecasted 0.7% growth. Manufacturing output expanded by 2.0% year-on-year but remained stagnant month-on-month. It is worth noting that the index rose by 0.8% m/m in December.

The UK Services PMI also demonstrated zero progress despite a previous decrease of 0.2%.

These figures could be more encouraging. This is attributed to the high interest rates, which hinder companies from expanding due to the prohibitive cost of borrowing and discourage consumer activity. In addition, structural problems are to blame.