GBP/USD declines towards 1.2000 as Fed’s higher interest rate concerns strengthen – by Sagar_Dua24 GBPUSD Fed RiskAversion Inflation GDP
Fears of an upside surprise in US inflation and back-to-back Pentagon events are portraying a risk-off impulse.
Renewed concerns of more policy tightening by the Fed and disappointed quarterly earnings forced S&P500 to settle last week with the highest losses since December. This has strengthened the risk-aversion theme further. Also, the Pentagon shot down an unidentified object over Alaska on Saturday. This is the second event in less than a week after the Pentagon shot down the spy Chinese balloon, which was later identified as a civilian by the Chinese administration.
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