# British pound is taking on 'emerging market' characteristics, Bank of America says

> Bank of America says sterling is taking on 'emerging market' characteristics as the UK economy shrank 0.1% in March and short positions against the pound build. The pound was down about 7% against the dollar year-to-date, trading just below $1.26.

- Date: 2022-05-31 · published 2022-05-31T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/41639-british-pound-is-taking-on-emerging-market-characteristics-bank-of-america-says
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

Sterling weakness reflects UK recession risk and currency-driven import cost pressure, with little direct effect on feed commodity prices.

## Read by commodity

- GBPUSD: bearish ▼

## Sources

- cnbc.com: https://www.cnbc.com/amp/2022/05/31/sterling-is-taking-on-emerging-market-characteristics-bank-of-america.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.