Micah Jonah
February 2, 2026
The British pound remained steady against the U.S. dollar on Monday, trading near $1.37, as investors awaited the Bank of England’s (BoE) policy announcement scheduled for Thursday.
Sterling touched $1.3867 last week, its highest since September 2021, before retreating slightly due to a stronger U.S. dollar. Against the euro, the pound was little changed at 86.61 pence.
Economists expect the BoE to hold its benchmark interest rate at 3.75%, citing robust economic data and the highest inflation rate among G7 nations. The move is anticipated to have minimal immediate impact on the pound.
Meanwhile, the UK manufacturing sector showed signs of recovery, with the S&P Global Manufacturing Purchasing Managers’ Index rising to its highest level since August 2024. Output growth remained steady, suggesting sustained momentum in the economy despite lingering inflationary pressures.
