June British Pound futures fell for a fourth consecutive session, dropping 2.22% for the week to mark the largest weekly decline since November 2024. Despite better-than-expected U.K. GDP growth of 0.6% for the first quarter, the pound failed to find durable support as the Bank of England continues balancing above-target inflation against fragile domestic demand. Instead, currency markets focused on surging U.S. Treasury yields, with the 10-Year yield reaching a one-year high of 4.55%. Persistent global tensions and a lack of resolution surrounding the Hormuz blockade have driven energy costs higher, prompting a shift in U.S. inflation expectations and increasing the probability of a Fed rate hike, strengthening the dollar against sterling.
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