Posted 1/22/2024, 2:34:49 PM
Pound Rallies on Risk Appetite Despite Looming Recession Fears for UK Economy
- Pound Sterling hits fresh weekly high as risk appetite in markets improves despite recession fears in UK.
- UK economy threatens to tip into technical recession due to high inflation, rising interest rates, and falling consumer spending.
- BoE struggles with policy decision between taming inflation and safeguarding economy from recession.
- Investors scale back bets of Fed rate cut in March, now seeing higher chance of rates on hold.
- Pound climbs back above 1.2700 resistance on upbeat market mood though faces headwinds from weak economic outlook.