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GBP to USD Forecasts: Sub-$1.23 in View on US Inflation and Fed Bets
It is a busy Friday session for the GBP/USD. UK retail sales figures for April will be in focus. Following the pickup in core inflation, we expect increased sensitivity to the retail sales figures. A larger-than-expected increase in retail sales would fuel inflationary pressure and give the Bank of England more reason to take a more hawkish policy outlook. While the retail sales figures will influence, market sentiment toward the US debt ceiling crisis will remain the key driver. Investors should also consider central bank chatter today and the reaction to the inflation and retail sales numbers. However, with no ... (full story)