Pound Has Strengthened Before CPI Data Release

Forex News

The British pound has strengthened before the release of data on the UK CPI. At the end of last week, the pound rose to the level of 1.3100 and closed at 1.3050 on Friday.

The growth of the pound may also be supported by the fact that the British government has officially recognized its financial obligations to the EU after Brexit.

Inflation data, which will be published tomorrow, may affect the Bank of England's further policy regarding interest rates. Analysts predict that inflation in the UK will accelerate to 2.9% - the highest level in about four years.

The recent increase in inflation was caused mainly by the depreciation of the British pound after the vote for Brexit last year.