2026.01.2209:38:35UTC+00Pound Holds Above Four-Week Low

The British pound maintained a position around $1.34, remaining above the four-week low of $1.338 observed on January 15, as tensions between the US and Europe seemed to temporarily subside. US President Donald Trump announced that he would hold off on imposing tariffs on goods from European countries that oppose his intention to acquire Greenland. Additionally, Trump mentioned that a "framework for a future deal" had been established following discussions with NATO, though specific details of the deal have yet to be disclosed.

Simultaneously, investors absorbed a range of UK economic data. In December, the public sector budget deficit decreased to £11.6 billion, surpassing market expectations of £13 billion. The headline CPI inflation climbed slightly to 3.4%, marginally exceeding predictions of 3.3%. Services inflation—a crucial indicator of domestic price pressures closely monitored by the Bank of England—rose to 4.5% from 4.4%, representing a smaller-than-anticipated increase. The unemployment rate held steady at 5.1%, the highest level since the onset of the pandemic, while wage growth tapered off to 4.5%, marking its slowest rate of increase since April 2022.