According to Jin10 data, Ebury economist Enrique pointed out that the gradual interest rate cuts by the Bank of England make the recent rise of the pound reasonable. Last week's UK inflation data exceeded expectations, confirming the necessity for the Bank of England to adopt a cautious attitude towards interest rate cuts.
In addition, the UK's relative immunity to US tariffs, the prospect of closer relations with the EU, and the robust demand of the UK economy also support the appreciation of the pound.