Anna 
The British Pound (GBP) witnessed a significant decline as fears of a technical recession in the United Kingdom intensified, coupled with ongoing uncertainty surrounding the Bank of England’s (BoE) firm monetary policy stance. The GBP/USD pairing continues to experience downward pressure as market sentiment shifts towards a risk-off approach, particularly in anticipation of the upcoming US December inflation data.
In the near term, market dynamics will be influenced by a forthcoming speech from Bank of England Governor Andrew Bailey, who is slated to provide insights into the future direction of interest rates and inflation. Investors are keenly observing whether the Bank of England will prioritize salvaging the economy from a potential downturn or focus on curbing inflationary pressures.
Looking at the economic landscape, market participants are gearing up for the release of UK factory data scheduled for Friday. Analysts are optimistic about a substantial recovery in industrial and manufacturing production figures, as they anticipate positive signs of resilience in these sectors.
