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  3. The Pound’s decline was put on hold. Overview for 20.06.2018

The Pound’s decline was put on hold. Overview for 20.06.2018

20.06.2018

In the middle of the week, GBPUSD stopped falling for some time, but the Pound is still under pressure.

On Wednesday afternoon, the British Pound reached stability against the USD, but its chances for recovery are rather low. The current quote for the instrument is 1.3186.

The statistics published today showed that the CBI Industrial Order Expectations recovered in June and reached 13 points after being -3 points the month before and against the expected reading of 1 point.

This time, the report, which investors usually pay little attention to, attracted their interest because it was very weak in winter and spring. At the same time, one should take into account that the price pressure is slowing down a bit, thus making the manufacturing process more financially predictable.  

The components of the report show that the domestic price expectations declined from 19 points to 13 points) along with the output expectations (from 27 to 18). The current numbers indicate that the industrial sector decline may be over soon. It would supported the United Kingdom’s economy quite significantly.

Apart from the statistics and the Brexit-related news, the Pound is still very sensitive to the USD behavior. At the moment, when the USD slowed down a little bit, the Pound has a chance to reach stability, but not for long.

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