Sterling on track for fourth weekly loss in a row

Sterling rose in European trade after sustaining heavy losses recently, holding above two-year lows against dollar, while still on track for the fourth weekly loss in a row. 

GBP Pricing

GBP/USD rose 0.3% to 1.2231, after losing 0.4% on Thursday, the sixth loss in a row, marking two-year lows at  1.2165.

Sterling is down 1% this week on track for the fourth weekly loss in a row. 

Bearish Data

UK data showed growth at 0.8% in the first quarter, missing estimates of 1%, and down from 1.3% in the previous quarter.

On a monthly basis, UK economy contracted 0.1% in March, compared to a 0.1% growth rate in February.

Such data cut down chances of several more UK rate hikes in 2022.

BoE Estimates

Bank of England decided to hike rates by 25 basis points last week to 1%, the fourth increase in a row.

The members are preparing for another 25 basis points, however they warned from a recession if rates were increased by 0.50%.

It didn't stop at this, the BoE went as far as predicting an actual recession next year by 0.25%.

US Dollar

The dollar is trading near 20-year highs once more at 104.92 against a basket of major rivals.

US inflation data astounded expectations once more and paved the way for a rate hike next month.

Estimates

As for the pound, analysts now expect it to fall as low as 1.2 while potentially even piercing that important barrier in the months to come.