• GBP/USD falls to around 1.2700 as BoE’s unexpected 50 bps rate hike and slowing global business activity sparks UK recession fears.
• US S&P Global Manufacturing PMI falls to 46.3, raising concerns about a possible “hard landing” despite steady economic performance amidst rate increases.
• Recession worries in the UK heightened with decreasing consumer confidence and a potential 6% interest rate hike from the BoE.

GBP/USD extended its losses in the late New York session, dropping around 0.30% meanders at around 1.2700, amid growing recession woes in the UK as data showed business activity deceleration. That, alongside an aggressive 50 bps rate hike by the Bank of England (BoE) as a response to stubborn inflation, weighed on the Pound Sterling (GBP). At the time of writing, the GBP/USD exchanges hands at 1.2709.