Sterling Stagnation: UK Pound Remains Steady Amid Economic Mixed Signals

The British pound showed little movement against the dollar and euro as trading remained slow at the start of 2026. Eased concerns over UK budget and Bank of England policies have influenced the currency's direction. Meanwhile, Britain's factory activity saw modest growth, with services data expected next week.

The British pound remained nearly steady against both the dollar and euro on Friday, as a lack of significant news kept the currency stable at the onset of 2026.

Sterling last traded at $1.3447 versus the dollar, down slightly from its recent three-month high. With holiday trading quiet in Britain, full activity is expected to resume next week.

Sentiment surrounding the UK budget and Bank of England policies has guided recent currency direction. A recent survey indicated moderate growth in Britain's manufacturing sector, with the services PMI set for release soon.

(With inputs from agencies.)