Anna 
In a week characterized by thin trading, the British Pound experienced reduced volatility as investors closely monitored expectations surrounding potential interest rate cuts by the Bank of England (BOE). The prevailing sentiment suggests a hope among investors that the BOE might delay rate cuts compared to the Federal Reserve (FED), given the clear downward trend in inflationary pressures in the United States.
Despite mounting concerns about a potential recession in the United Kingdom, investors continued to inject liquidity into the pound. The latest estimates indicate a contraction of 0.1% in the UK economy between July and September, and the Bank of England’s forecasts anticipate stagnation in the final quarter of the year. If the UK economy contracts again, it would enter a technical recession.
The dynamics in the currency markets, especially regarding the pound, remain influenced by the delicate balance between economic indicators and central bank decisions. Investors are closely watching how inflation trends, economic performance, and policy decisions will shape the trajectory of the British Pound against the backdrop of global economic uncertainties.
