The Pound Sterling (GBP) faces an intense sell-off due to the widening consequences of a historically aggressive rate-tightening cycle by the Bank of England (BoE). The GBP/USD prints a fresh 11-week low amid bearish market sentiment and rising risks of a recession in the UK economy. In the battle against stubborn inflation, the BoE has raised interest rates to 5.25%, the consequences of which are impacting UK corporations, forcing some to report insolvency due to their inability to cover interest obligations. Read More…
GBP/USD risks a deeper pullback in the next few weeks, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang. Read More…
On Friday, the British energy regulator, Ofgem, said it would lower its price cap on household energy bills from October to an annual level of GBP1,923 (USD2,418) for a typical dual-fuel household, compared with July’s price reduction to GBP2,074 ($2,617.60). Read More…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-pound-sterling-plunges-as-consequences-of-higher-interest-rates-widen-202308251849