The Sterling has run into a headwind the last couple of sessions after doing well the past two weeks. The U.K. released their delayed Final GDP report on Monday and it met expectations, but it added that the decline in the economy had actually been worse than initially reported. The S&P also got into the act yesterday when they announced that a downgrade for the U.K. economy’s outlook could be possible. Inflation data will be brought forth today including CPI reports. However what investors are likely to focus on today is the variety of outlooks for the British economy. The debate appears to be one which puts those who are talking about stagnation versus those who feel another downturn is coming. Few analysts believe that genuine growth is possible in the mid-term and what seems to be actually worrying investors is a double dip recession. The GBP has done well recently, but it could face rough sailing if risk appetite grows weaker.
Written by bforex.com
