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- The pound has been boosted by signs of improvement in the UK economy
The pound rose above $1.30 against the US dollar yesterday to its highest level in more than a year, providing a boost for British tourists.
Sterling has been boosted by signs of an improving UK economy, while the dollar is under pressure amid fears of a US slowdown.
The pound rose yesterday to $1.3052, its highest level since July last year, but held steady against the euro at just over €1.17.
Momentum: The pound rose above $1.30 against the US dollar yesterday to hit its highest level in more than a year.
The pound has been gaining ground against the dollar amid concerns about the US economy, which have sparked speculation that the Federal Reserve, the US central bank, may have to cut interest rates by as much as half a percentage point next month.
Those fears have been fuelled by weaker-than-expected US employment figures. Now traders are speculating that revisions to US employment data could show up to a million fewer jobs were created in the year to March 2024 than previously thought.
This has raised fears that the US economy may fail to achieve a so-called “soft landing,” when inflation falls without triggering a recession. Markets will also be watching comments from Federal Reserve Chairman Jerome Powell on Friday at the Jackson Hole meeting of central bankers in Wyoming.
Bank of England Governor Andrew Bailey is also expected to speak at the meeting. The president faces an economic environment in which inflation is close to 2% and unemployment is falling.
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