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Pound steadies near a six-month high as UK sentiment improves

Deutsche Bank said its dbDIG survey showed a net +21% share of households expecting stronger UK growth under PM Burnham, though only a 2% net balance expect personal finances to improve.

Reported · Written up by our desk · Major Pairs

Deutsche Bank strategists, cited by FXStreet, pointed to a sharp improvement in sentiment toward UK Prime Minister Burnham and the Labour Party, with recent polls showing Labour as the most popular party ahead of Reform for the first time in about 18 months.

In the bank’s dbDIG household survey, households were more optimistic about economic growth than their own finances. Deutsche Bank said the net balance of households confident the new government can deliver stronger UK growth was +21%, with especially large optimism among younger respondents aged 18 to 34 and higher-income households earning more than GBP 50,000, where the net balance reached +37%.

However, the same survey showed a more mixed view on personal finances, highlighting a divergence between expectations for the overall economy and household outlook. Across the survey, only 2% more households expected they would be financially better off under the new government.

FXStreet added that GBP/USD was trading above 1.3650, extending its weekly rally and holding its highest level since February, with upbeat UK PMI data cited as supportive of Pound Sterling.

Latest closeGBP/USD 1.354 ▲0.3%

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