Pound Slumps as Weak UK GDP Data Fuels Bank of England Rate Cut Bets

The GBP/USD pair declined for a third consecutive session, retreating from its recent one-week high following disappointing economic data. Official figures revealed that UK GDP for the fourth quarter came in softer than anticipated, signaling potential economic stagnation. This weakness has prompted market participants to ramp up their expectations for interest rate cuts by the Bank of England (BoE). A cooling economy is seen as a catalyst for reducing inflationary pressures, providing the central bank with the necessary room to pivot toward a dovish stance. Consequently, the British Pound faced increased selling pressure against major counterparts as growth concerns intensified. Investors are now closely monitoring upcoming central bank commentary for further clues on the timing of the first rate reduction.

Sources:fxstreet.com