Pound Sterling Faces Pressure Due to Multiple Headwinds

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Pound Sterling Faces Pressure Due to Multiple Headwinds
Pound SterlingUK EconomyQ3
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The Pound Sterling (GBP) is expected to continue its losing streak for the fifth trading session as the market participants anticipate a sharp slowdown in the United Kingdom economy.

Pound Sterling faces pressure due to multiple headwinds. The UK economy remained stagnant in Q3 while economists forecasted a 0.1% contraction. Business investment by UK firms fell sharply in Q3 due to higher borrowing costs . The Pound Sterling is expected to continue its losing streak for the fifth trading session as the market participants anticipate a sharp slowdown in the United Kingdom economy.

After factory data, investors will shift focus to the labor market and inflation data, which will be published next week. Meanwhile, the US Dollar Index aims to extend recovery above the immediate resistance of 106.00, supported by hawkish remarks on interest rate guidance by Federal Reserve Chair Jerome Powell. Jerome Powell leaned towards raising interest rates further, claiming the battle against stubborn inflation was far from over. Apart from Jerome Powell, interim Bank of St.

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Pound Sterling UK Economy Q3 Contraction Business Investment Borrowing Costs Losing Streak Market Participants Slowdown

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