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The GBP/USD pair had another tough week as the US dollar strength accelerated. The dollar index surged above $108 for the first time in over 20 years after the strong inflation data. The numbers revealed that the country’s headline inflation surged to a 40-year high of 9.1%.
Therefore, the dollar strengthened as investors reacted to the possibility that the Federal Reserve will continue tightening in the coming months. Analysts moved their expectation from a 0.75% rate hike to about 100 basis points.
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