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GBP/USD Slides Toward $1.35 as Hot US PPI Lifts Fed Rate Hike Odds

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The Story

News Summary

  • GBP/USD dropped toward $1.35 as strong US PPI data raised the probability of a Federal Reserve rate hike above 70%, boosting the dollar.
  • Meanwhile, surging energy prices and Middle East tensions increased UK economic strain, even as BoE Governor Bailey pushed back against aggressive market rate-hike expectations.
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GBPUSD price history

1.35 +1.50% over the displayed period

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