Ella 
Sterling (GBP) is under selling pressure as investors start to worry about the UK’s weak economic outlook and the risk of upward inflation on the Albion coast. The GBP/USD currency pair has come under intense pressure after the Bank of England (BOE) unexpectedly paused tightening policy last week. The Bank of England suddenly skipped interest rate tightening amid expectations of a rate hike, signaling the risk of an economic slowdown.
The UK economy is losing steam amid uncertainty over the outlook for interest rates ahead of the election. British Prime Minister Sunak pledged to halve inflation to 5.3% by the end of the year, but Bank of England policymakers announced a pause in interest rate hikes, a sign that the Bank of England may not be able to deliver on its promise. UK economic activity has been hit hard by rising interest rates. Following a contraction in manufacturing activity, the services PMI also fell below the 50.0 threshold for the second consecutive time.
