Sterling gives up two-week high on recession concerns
Sterling declined in European trade on Thursday away from two-week highs against dollar, amid active profit-taking.
The pound is also pressured by concerns about recession in the UK, which might force Bank of England to put the brakes on policy tightening.
GBP/USD fell 0.2% to 1.2551, away from a May 5 high at 1.2612, after closing up 0.3% on Wednesday, the fourth profit in five days.
Recession
Analysts now worry about recession triggered by inflation and a slump in consumer spending.
A spate of weak UK data indeed indicate weakening economic activities, expected to weigh on policy tightening prospects.
Bank of England
Now analysts expect the BoE to put the brakes on policy tightening to avoid a hard crash in economic performance.
Estimates
JPMorgan expects the pound to fall to 1.16 against dollar this year from 1.31 in previous forecasts, with short-term negative trading as well.
| Symbol | Last | Change | Chg.% | ||
|---|---|---|---|---|---|
|
|
|
1.0427
|
-0.0154
|
1.4550%
|
|
|
|
|
1.2096
|
-0.0176
|
1.4311%
|
|
|
|
|
19.698
|
-1.669
|
7.811%
|
|
|
|
|
108.022
|
0.605
|
0.563%
|
|
|
|
|
111.50
|
2.47
|
2.27%
|
|
|
|
|
1799.775
|
-29.770
|
1.627%
|
|
