"GBPUSD has maintained a downward trend since late January, as the US dollar has been consistently supported by a high interest rate environment and increasing risk-off sentiment across global markets."
"The UK economy is facing a familiar challenge of weak growth combined with persistent inflation, particularly given its high dependence on imported energy, making input costs highly sensitive to fluctuations in oil and gas prices."
"According to forecasts from major institutions such as JPMorgan, the BoE may still deliver at most one rate hike in 2026, suggesting that UK monetary policy has not fully shifted toward easing."
"The Fed is currently maintaining interest rates within the 3.50%-3.75% range, while US 10-year Treasury yields remain elevated around 4.3%-4.4%, continuing to attract strong global capital inflows."
GBPUSD has been on a downward trend since late January, influenced by a strong US dollar supported by high interest rates and risk-off sentiment. After reaching 1.31-1.32, the pair is consolidating, balancing USD strength with expectations for the British pound. The Bank of England maintains interest rates at 3.75% amid weak growth and persistent inflation. Forecasts suggest limited rate hikes in 2026, allowing GBP stability. The Federal Reserve's interest rates are stable, but rising energy prices may pressure inflation and economic conditions.
Read at London Business News | Londonlovesbusiness.com
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