Forex▲ Bullish
Pound Holds Near Highs as Pantheon Cites UK Resilience to Oil
GBP/USD held near 1.3366 after Pantheon Macroeconomics said the UK economy is showing surprising resilience despite higher oil prices, though Middle East tensions pose a risk of higher inflation and further BOE tightening.
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Sterling traded close to recent highs Monday after Pantheon Macroeconomics said the UK economy is showing surprising resilience to higher oil prices. The pound changed hands near 1.3366 against the dollar.
Renewed Middle East tensions have increased the risk of higher inflation, the consultancy said. That could force the Bank of England to tighten policy further. Pantheon attributed the economy's resilience to a stronger-than-expected service sector and a labor market that has not cracked under the strain of higher energy costs.