The GBP/USD currency pair dropped to $1.265 after its largest weekly increase since mid-August.
A strengthening U.S. dollar influenced this decline, following statements from President-elect Donald Trump, who emphasized the need to uphold the dollar’s strong position.
BoE Warns of Trade Barriers and Inflation Risks
The Bank of England also highlighted potential risks, such as increased trade barriers that could disrupt global economic growth, introduce inflation uncertainties, and lead to higher borrowing costs.
Expecting a rate cut of 75 basis points by 2025, the financial community is keenly awaiting the Bank of England’s upcoming Decision Maker Panel on December 5. This event is anticipated to shed more light on future inflation trends and the bank’s strategy for monetary policy.
Meanwhile, the pound has seen gains against the euro amid rising concerns about political turmoil in France.