GBP: Soft UK GDP pressures Sterling – ING

💡 DMK Insight

Weak UK GDP data is shaking the pound, and here’s why that matters: With the upcoming jobs data and CPI release, traders should brace for volatility. A likely Bank of England rate cut could further weaken the pound, especially if inflation data doesn’t show signs of improvement. The market is already pricing in these expectations, so any surprises could lead to sharp moves. Keep an eye on key support levels around recent lows; a break could trigger more selling pressure. But here’s the flip side: if the jobs data surprises positively, it could bolster the pound, leading to a short squeeze. Traders need to be ready to pivot quickly based on these releases. Watch for the CPI and BoE announcements as potential catalysts that could reshape market sentiment and influence correlated assets like UK bonds and equities.