GBP/USD faces pressure as BoE's Bailey addresses global yield curve steepening

GBP/USD is experiencing downward pressure following BoE Governor Bailey's comments on global yield curve steepening and its impact on UK investment decisions. Bailey noted that the steepening in bond yield curves is not particularly UK-focused but a global phenomenon that requires careful consideration in the annual QT (Quantitative Tightening) decision. The Governor highlighted that firms are reporting higher uncertainty is delaying investment decisions and capital raising, which could have knock-on effects on employment. This cautious tone from the BoE, combined with concerns about business investment slowdown, is weighing on sterling sentiment. The yield curve steepening reflects growing divergence between short-term and long-term interest rate expectations globally. For GBP/USD traders, these developments suggest potential headwinds for the pound as investment uncertainty could impact UK economic growth prospects and potentially influence the BoE's future monetary policy decisions.