Will the GBP/USD downtrend continue ?UK economic news:
• UK interest rates expected to fall more than expected
• The BoE's decision to pause and possibly end its tightening policy suggests interest rates are no longer supported.
• Weaker inflation, higher unemployment and gloom from policymakers
• Some news shows UK economy slowing, gloomy forecast points to continued pressure on sterling
• The UK economic outlook is not expected to be favourable for the Pound.
• Prolonged recession, BoE cuts interest rates much sooner than financial markets price
• BoE's less aggressive approach to weakening sterling
Personal opinion:
GBP/USD is struggling to capitalize on its modest recovery from the 1.2100 level reached earlier this week, but the backdrop of poor UK economic data is holding the pair back. Meanwhile, the Dollar Index remains on the rise, with US Treasury yields providing the main driver, helping to limit the USD’s losses.
