Ella 
Sterling faced a sell-off as tensions between Israel and Hamas dampened market sentiment.
Manufacturing and construction activity in the UK is at a fragile stage as mortgage rates rise.
Bank of England Governor Bailey remains confident that inflation will fall to 5% or below by the end of the year.
Sterling (GBP) corrected on Monday after a brief pullback as the Israel-Hamas conflict that began over the weekend reinforced a risk-off theme. The GBP/USD currency pair fell sharply as the Federal Reserve (Fed) is expected to continue considering another interest rate hike, while the Bank of England (BoE) is likely to keep interest rates on hold to allay fears of a UK recession.
The UK’s economic outlook is losing resilience as the demand outlook worsens amid a battle with persistent inflationary pressures. British businesses are reluctant to raise capital at higher borrowing costs, reducing labor demand and overall output. The situation is expected to remain fragile for an extended period as the Bank of England vows to keep interest rates capped until inflation falls to 2%.
