We’re not seeing GBP drop, we’re seeing USD being used as a safe currency as it always is in turbulent times. And this is truer now than it has ever been as the USD is largely energy independent and will even be exporting energy to the rest of the world.
This is more around expecting US rate hikes than anything to do with UK inflation.
Well November 2020 really isn’t that far, and looking at the past 5 years data confirms that the number in itself is absolutely not scary.
The downward trend is for sure, but “lowest since November 2020” is just fearmongering.
3 comments
And the Euro is doing even worse vs USD and vs GBP.
https://www.dailyfx.com/eur-usd
https://www.dailyfx.com/eur-gbp
We’re not seeing GBP drop, we’re seeing USD being used as a safe currency as it always is in turbulent times. And this is truer now than it has ever been as the USD is largely energy independent and will even be exporting energy to the rest of the world.
This is more around expecting US rate hikes than anything to do with UK inflation.
Well November 2020 really isn’t that far, and looking at the past 5 years data confirms that the number in itself is absolutely not scary.
The downward trend is for sure, but “lowest since November 2020” is just fearmongering.