Pound Sterling holds onto recovery as market mood remains upbeat

Share:

• Pound Sterling aims for sustainability above 1.2600, supported by a risk-on mood.
• UK housing demand drops sharply due to rising mortgage rates.
• Investors hope that policy divergence between the Fed and BoE will vanish this month.

The Pound Sterling (GBP) is holding its ground on Wednesday as a higher risk appetite among market participants continues to improve the appeal for risk-sensitive assets. The GBP/USD pair remains well-supported as investors hope that the policy divergence between the Federal Reserve (Fed) and the Bank of England (BoE) will vanish this year. More interest rate hikes from the BoE are in the pipeline as the core Consumer Price Index (CPI) data remains sticky near its all-time peak.