GBP took a pause. Overview for 01.03.2024

The British pound sterling, paired with the US dollar, stopped falling. The current GBPUSD exchange rate stands at 1.2626.

Over the month, GBP experienced a slight decrease against the US dollar, just by 0.26%. Following the January rise, this news is considered neutral.

There were almost no domestic UK statistics this week; hence, GBP investors were compelled to focus on the US Core PCE and the data from the eurozone.

Simultaneously, the market is monitoring developments in the UK budget policy. Chancellor of the Exchequer, Jeremy Hunt, is expected to cut taxes. However, he is restrained from this promising step by his commitment to pay off the country's national debt, estimated at 2.5 trillion GBP (3.2 trillion USD).

All these ambitious plans might deter the Bank of England from cutting interest rates in May or June and prompt it to await a more opportune time for such action.