The Pound continues recovering. Overview for 31.05.2018

GBPUSD has been growing for the second trading session in a row; the Pound is reaching stability thanks to the USD rollback.

The British Pound continues rising against the USD on Thursday afternoon. The current quote for the instrument is 1.3315.

Today’s statistics from the United Kingdom turned out to be more or less neutral. The Nationwide HPI lost 0.2% m/m in May against the expected reading of +0.1% m/m. In April, the indicator expanded by 0.1% m/m, but overall one can see that the indicator is far from being stable.

Another British indicator, the Mortgage Approvals, added 62K in April, which is very close to the expected reading of 63K. The Net Lending to Individuals over the same period was 5.7B after being 4.4B in the previous month and against the expected reading of 5.2B. The interesting thing is that British people have their mortgages approved and get the money, but don’t spend it. If they did, it would be seen through real estate and retail sales indicators, at least.

However, the statistics barely influence the Pound right now. External background and the USD behavior are much more important at the moment. Earlier the American currency reached the highest levels against other traded currencies, including the Pound, over the last several months, and then started a correction. This is what helped the British currency to start recovering.

The USD behavior will surely remain the major factor for the Pound for a while, at least until some stronger drivers appear.  

RoboMarkets Analytical Department