The GBP/USD pair remains resilient, with the British pound sterling reaching a five-month peak against the US dollar. The current exchange rate for GBP/USD is recorded at 1.2754.
Recent statistics confirm that economic growth in the UK exceeded expectations in November, although it remained subdued over the last quarter. November witnessed a 0.3% year-on-year increase in the UK's GDP, surpassing forecasts. However, the production volume experienced a 0.2% decline over the three months ending in November.
The pound has maintained its robust position in recent months, benefiting from consistently higher inflation in the UK compared to the US and Europe. This reinforces the belief that there is no imminent anticipation of an interest rate decrease from the Bank of England. Additionally, this stability has supported the yield of UK bonds, enhancing the pound's attractiveness to investors.
Market participants are anticipating a 125-basis point reduction in the Bank of England's interest rate throughout the year.