UK GDP for April posted a surprise contraction of 0.3%, marking a second consecutive month of negative growth. CBI downgraded its growth outlook to 3.7% for this year, from 5.1% and 1% in 2023, while inflation is seen rising to 8.7%. GBP downside will persist with the currency the poster child for stagflation and remains vulnerable to a dovish repricing. GBP/USD eyes a return to the YTD low, while a double top and bearish RSI divergence highlights reversal risks, says DailyFX’s Andrew Keen. Keen: ‘To me this is unlikely to happen given that the BoE has been a reluctant hiker during this tightening cycle, meanwhile, they have also raised concerns over growth . . .
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