British Pound Latest – GBP/USD Rattled by UK PLC Woes and USD Strength

[MongiIG]

Aug 24, 2022 | DailyFX
Nick Cawley, Strategist

GBP/USD - PRICES, CHARTS, AND ANALYSIS

• UK plc is in a mess.
• The US dollar remains in charge of GBP/USD.

The UK remains in a mess with record energy prices, double-digit inflation, stuttering growth, continued strike action, and a complete lack of leadership from No.10 leaving the country rudderless. One investment bank’s recent note suggested that UK inflation could hit 18% early next year, prompting a round of sensationalist headlines. While this may happen, a new PM will be decided on September 5th, and inflation and energy costs, will be on top of their agenda. Against this dire backdrop, and with the US dollar resuming its run higher, it is no wonder that cable remains weak and under considerable downside pressure.

British Pound (GBP/USD) Slumps, UK Consumer’s Mood Darkens

After printing a fresh two-and-a-half-year low on Tuesday (1.1718), cable pushed higher in the afternoon session yesterday after the latest US PMI readings missed expectations by a margin.