Gate.io: The high yield of British bonds implies the risk of another decline in the British pound.

On January 14th, Jin10 Data reported that the GBP/USD rebounded after touching a two-year low on Monday. However, Dutch international analyst Francesco Pesole stated in a report that the pound remains fragile due to high UK bond yields and inflation data to be released on Wednesday. He stated that although UK bonds and the pound may stabilize in the next few weeks, the GBP/USD may still fall further to the 1.20 level in the short term. Stronger-than-expected inflation data may intensify dumping of UK bonds, push up yields, and suppress the pound. Pesole also stated that the rising borrowing costs increase the risk of further cuts in government spending in the spring, which will damage the pound.