GBP/USD fell sharply below the 1.3400 level on Wednesday, driven by a significant drop in the UK’s inflation rate, which has increased expectations for a dovish stance from the Bank of England (BoE). This decline in the currency pair reflects traders' concerns about future interest rate cuts, as the BoE prepares to announce its monetary policy decision.
Meanwhile, the US dollar regained some strength, serving as a headwind for the British pound. As the exchange rate continues to fluctuate, market participants are closely monitoring economic indicators that could influence further movements in GBP/USD, particularly with the BoE's upcoming meeting expected to reshape the outlook for the pound in the forex market.
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Data Source: FX Killer Analysis Team Updated: 2025-12-17 16:27
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.