The Pound plummeted but survived. Overview for 22.04.2020
On Wednesday morning, GBPUSD is reaching stability after plummeting the day before; market players are not ready to sell forever.
The British Pound is recovering against the USD on Wednesday after plunging earlier. The current quote for the instrument is 1.2308.
Last night, when the energy commodity market was flooded with panic and sales due to global fears of relatively low demand for energies, investors’ attitude to risks was completely negative. It’s quite clear that the world is in the midst of a global crisis and these sales aren’t obviously over yet. However, there is hope for a short pause.
The statistics published by the United Kingdom in the morning showed that the Core CPI was 1.6% y/y in March after being 1.7% y/y in the previous month. The actual reading matched the expected one and that helped to neutralize market players’ negative response. The CPI showed 1.5% y/y after being 1.7% y/y the month before.
By the way, the inflation target for the Bank of England remains at 2%.
On the other hand, the RPI showed 2.6% y/y, which is better than both previous and expected readings of 2.5% y/y and 2.3% y/y respectively. This indicator is used by the British authorities for calculating and adjusting social payments, such as pensions, benefits, and gilts.
Both the PPI Input and Output showed negative readings, thus implying rather gloomy expectations for the future.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is intended for our customers, and is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.