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by GBP/USD—The British pound has dipped to $1.267, marking its lowest point in about a month. This decline comes as investors keenly await significant economic data, such as the consumer price index (CPI) figures and the upcoming Bank of England (BoE) policy meeting.
GBPUSD Fundamental Analysis – 18-June-2024
BoE Likely to Keep Rates Steady Again
Following a similar decision in May, the BoE is anticipated to maintain interest rates at 5.25% on Thursday. However, there’s growing speculation that more Monetary Policy Committee (MPC) members might advocate for a rate cut.
UK Inflation Hits 2% Target in May
Inflation in the UK is expected to have decreased to 2% in May, matching the BoE’s target. This anticipated decline in inflation could influence future interest rate decisions, impacting borrowing costs and consumer spending.
Rishi Sunak’s Election Struggles
Prime Minister Rishi Sunak faces challenges on the political landscape. Recent polls indicate his Conservative Party is trailing ahead of the July 4 general election. This political uncertainty adds another layer of complexity to the UK’s economic outlook, influencing investor sentiment and market stability.
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