The British pound fell over 1% against the dollar on Friday after a stronger-than-expected U.S. nonfarm payrolls report cemented the case for another super-sized U.S. rate hike.
While the Bank of England lifted rates by 50 basis points on Thursday, raising the key rate by the most in 27 years, its rate-hiking pace has been slower than that of the U.S. Federal Reserve.
The pound was last down 1.06% at $1.20295 , having touched a 10-day low at $1.2004 just after the U.S. data. It was also set to end the week lower after two straight weeks of increases. The BoE said on Thursday the economy would slip into recession at the end of 2022 and not emerge until 2024.Analysts predict that the gloomy outlook, coupled with the BoE's resolve to fight inflation, which the bank expects to hit 13%, is likely to keep sterling under pressure.
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