The British pound remains near a year-high as economic indicators suggest growth, while SoftBank acquires UK's Graphcore amidst industry developments.
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The value of the pound is nearing a one-year high after yesterday's GDP report indicated a 0.4% increase in UK economic activity for May. Concurrently, inflation rates in the United States unexpectedly decreased to an annual rate of 3%, down from 3.3%, indicating potential for future interest rate adjustments and influencing currency values globally.
The pound reached a value close to $1.2947 yesterday, its highest since July last year, inching near the $1.30 threshold. As of this moment, it has slightly risen to approximately $1.2911. Ipek Ozkardeskaya from Swissquote Bank commented on recent trends:
"The UK pound saw an uptick earlier due to stronger growth figures diminishing expectations for a rate cut in August and increased hawkish statements from the Bank of England, combined with reduced political uncertainty. However, investors are cautious as dovish sentiment within the BoE persists."
In corporate news, Japanese technology conglomerate SoftBank has announced its acquisition of Graphcore, a UK-based specialist in artificial intelligence chip technologies. This move follows intense speculation regarding Graphcore's direction and sustainability amidst competitive challenges within the industry.
Graphcore faced difficulties securing necessary funding to maintain its position as an alternative to American tech giant Nvidia, which has experienced significant valuation growth due in part to demand for AI-related hardware. Graphcore's financial struggles became apparent with reported losses and workforce reductions. The company remains hopeful under the leadership of SoftBank post-acquisition.
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