Watch Jeremy Stretch, Head of G-10 FX at CIBC detail the factors that could push the GBP/USD pair down to 1.23-1.24 levels. The segment is hosted by Tip TV Presenter Zak Mir.

Key points

Bank wary of further spike in the imported inflation

UK political uncertainty amplified, but not to an extent in which markets are pricing-in another general election

Long end of the treasury yield curve suggests the Fed isn’t going to ramp up the pace of tightening

Fed still believes the Phillips curve works - labor market tightening leads to wage price inflation… if it does work, it will allow the Fed to tighten the policy at a fairly moderate pace