Post #15962

GBP/USD Slides for a Fourth Day as UK Stagnation Meets Safe-Haven USD Demand GBP/USD is sliding again, on track for a fourth straight daily loss. Price action remains heavy, and until the pair finds a clear base, rebounds are likely to be treated as corrective moves within a broader risk-off downtrend. Sterling is getting hit from two angles: weak UK data and a stronger safe-haven dollar. UK growth unexpectedly stagnated in January, while longer-term inflation expectations remain stubbornly high—an ugly mix heading into an energy shock environment. The Middle East conflict has revived oil-driven inflation risk, which makes it harder for the BoE to cut rates even as domestic demand looks soft. The market is leaning toward a hold next week rather than a cut, with some traders even pricing a more hawkish path into 2026. But the counterpoint is simple: if growth stays weak and the labor market cools, sustained tightening expectations may prove excessive—especially if energy prices eventually roll over. - Alan