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  3. The Pound couldn’t remain neutral. Overview for 11.06.2019

The Pound couldn’t remain neutral. Overview for 11.06.2019

11.06.2019

On Tuesday morning, GBPUSD remains under pressure after pretty weak numbers on the country’s GDP.

Pressure on the British Pound continues on Wednesday. The current quote for the instrument is 1.2681.

The weak GDP report for April sent the British Pound flying yesterday; this morning, this driver is still affecting GBPUSD. The indicator lost 0.4% m/m after reducing by 0.1% m/m in March. It seems that the key reason of this decline was the Industrial Production, which decreased by 2.7% m/m after adding 0.7% m/m in the previous month. Another indicator, the Manufacturing Production, lost 3.9% m/m in April after expanding by 0.9% m/m the month before. The Construction Output also declined and showed  0.4% m/m.

It is understood that the main reasons of these weak numbers are decline in sentiment of both businesses and consumers and uncertainty with the Brexit deal. If it is so, these problems may become more and more serious. 

Today, the United Kingdom will remain the leading publisher of news and reports in this week’s economic calendar. The country is going to report on the Claimant Count Change for May, which is expected to show 12.3K, which is less than a month ago.   

The Average Earnings Index may add 2.9% 3m/y after expanding by 3.2% 3m/y in the previous period. 

The Unemployment Rate in the United Kingdom is expected to remain unchanged at 3.8%.

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