GBP/USD to juggle in a 1.2320-1.2370 range as UK recession fears loom, US inflation in focus
The GBP/USD pair is oscillating in a narrow range of 1.2323-1.2369 as renewed recession fears after the monetary policy announcement by the Bank of England (BOE) have sidelined investors. The announcement of the monetary policy by BOE Governor Andrew Bailey unveiled a rate hike by 25 basis points (bps) with a majority of 6-3. The minority policymakers were advocating a consecutive rate hike by 50 bps.
GBP/USD Weekly Forecast: The worst seems far from over, focus shifts to US inflation, UK GDP
The Fed-BOE contrast remained in play, despite the less aggressive Fed stance, as the dire UK economic outlook widened the economic divergence alongside the monetary. GBP/USD was fairly resilient throughout the week before crashing to fresh 22-month lows below the 1.2300 mark. The pair has recorded the third straight weekly loss, as attention turns towards the US inflation and the UK quarterly GDP.