The data published in the GBP Spring Forecast Statement indicates that there are concerns about the economic growth in the UK, as evidenced by the negative GDP figures for Q4 and the decline in GDP MoM in December. This could lead to a slowdown in the UK economy, which may be exacerbated by the high CPI YoY rate of 4.0%, indicating inflationary pressures. The BoE's decision to keep interest rates at 5.25% in January reflects a cautious approach to monetary policy in light of these economic challenges. Additionally, the uncertainty surrounding Brexit continues to weigh on the UK economy, as reflected in the GBP's volatility in the forex market.
Currency sentiment: Bearish
Sentiment timeframe: Medium term