The British Pound tracked a global market selloff lower after a surprisingly hawkish European Central Bank policy decision rattled investors.
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The British Pound sold off in the wake of the Bank of England's decision to hike interest rates by 50 basis points, thereby maintaining what is becoming a standard response in the current cycle.
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In an unusual twist, the British Pound could benefit from a bearish Bank of England.
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UK CPI inflation came in below analyst estimates when released mid-week, resulting in a softer Pound Sterling.
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UK economic growth data came in stronger than analysts were expecting when released on Monday, offering the Pound some sideline support at the start of what promises to be a pivotal week.
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The Bank of England will go with a 50 basis point hike as policymakers look to ease off the accelerator.
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Citi says the British Pound will retreat towards 2022's lows over the coming months.
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