The Pound continues retreating. Overview for 22.08.2022
GBPUSD is falling attacked by the “greenback” and because of the controversial economic outlook.
The Pound Sterling remains weak against the USD. The current quote for the instrument is 1.1833.
The Pound is highly likely to continue “losing weight” in the near future. No matter what decisions the Bank of England is going to make, raising the benchmark interest rate aggressively or sticking to its conservative strategy, the GBP will fall.
In fact, the BoE has no options: if the regulator wants to take inflation under control, it will have to raise the rate. But because of a significant lag in rate hikes, the country will still remain far behind.
This week, the United Kingdom is scheduled to release preliminary reports of Manufacturing/Services PMIs in August. Both indicators are expected to drop, because prices are rising while consumer demand is plunging.
Investors should also pay attention to the CBI Distributive Trades in August, which might fall to 2 points after being 8 points the month before. The decline can also be easily explained by the price surge.
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.
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