The British pound, paired with the US dollar, is gearing up for a torrent of statistical information. The current GBPUSD exchange rate stands at 1.2511.
The pound is hovering near its three-month lows, with investors eagerly anticipating a substantial volume of statistical data releases, including the monthly GDP report and employment market updates.
At the same time, a sense of caution prevails ahead of significant political meetings scheduled for the upcoming week in both the UK and the US next week.
Earlier, the governor of the Bank of England, Andrew Bailey, noted that the central bank is approaching the end of a series of interest rate hikes, despite persistent inflationary pressures. From a fundamental perspective, the prerequisites for further increases in borrowing costs still remain in place.
This is not the first time that UK monetary policymakers have expressed concerns about interest rates reaching their peak. These levels could potentially harm the UK economy, and the exact strategies the BoE will employ to manage inflation through alternate mechanisms remain uncertain.