GBP/USD – Market not expecting BoE rate cut in March

GBP/USD: Market not expecting BoE rate cut in March

GBP/USD contracted to 1.3350 on Thursday, with the pound remaining under pressure and trading near three-month lows.

Pressure on the dollar has eased over the past 24 hours following reports that Iran has offered to discuss terms for a potential end to the conflict. According to The New York Times, representatives of the Iranian Ministry of Intelligence made contact with the CIA through intermediaries, just one day after the commencement of joint US-Israel attacks. However, Israeli authorities have advised Washington not to respond to this proposal just yet. Read more…

Pound Sterling underperforms as UK faces stagflation risks amid Middle East war

The Pound Sterling trades lower against its major currency peers, is down 0.22% around 1.3340 against the US Dollar (USD), during the Asian trade on Thursday. The British currency faces selling pressures amid fears that the United Kingdom (UK) economy could face stagflation risks due to higher energy prices, a situation in which inflation accelerates with economic growth and employment conditions remaining stagnant.

The ongoing war between the United States (US), Israel, and Iran, which has disrupted the global oil supply chain by choking the Strait of Hormuz, has prompted energy prices. Read more…