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[ING Says High UK Gilt Yields Signal Risk Of Further Pound Decline] Internationale Nederlanden Group Analyst Francesco Pesole Reported That The British Pound Remains Vulnerable Due To Elevated UK Gilt Yields And The Upcoming Inflation Data On Wednesday. He Noted That While UK Gilts And The Pound Might Stabilize In The Coming Weeks, GBP/USD Could Still Dip Further To The 1.20 Level In The Short Term. Stronger-Than-Expected Inflation Data Could Trigger Further Selling Of UK Gilts, Driving Yields Higher And Weighing On The Pound. Pesole Also Warned That Rising Borrowing Costs Increase The Risk Of Further Government Spending Cuts In The Spring, Which Would Hurt The Pound.
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