The Pound is plunging. Overview for 04.02.2021
GBPUSD remains under pressure; the USD is attacking.
The British Pound continues retreating against the USD of Thursday. the current quote for the instrument is 1.3588.
The statistics published in the afternoon showed that the Services PMI was 39.5 points in January after being 38.8 points the month before. It’s rather weak data but still better, especially in comparison to what we saw earlier. No one hopes for quick recovery because the country is still locked-down.
The USD is attacking pretty significantly: the “greenback” has reached its two-month highs against the Euro and continues getting stronger against the Pound as well. Quarantine restrictions intended to fight the coronavirus pandemic in the United Kingdom created a foundation for a gloomy economic outlook for the future and predict disappointing results of the first quarter of 2021. That’s bad for the Pound.
Later today, the Bank of England will announce the results of its February meeting. The interest rate is expected to remain unchanged at 0.1% - it’s not the time to revise it; the regulator said earlier that it wasn’t ready for negative rates.
It might be interesting to know the BoE’s stance on the current economic climate and economic outlook for the nearest 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.