GBP is having tough times. Overview for 06.07.2022
GBPUSD is another victim of global risk aversion.
The Pound sterling is looking weak against the USD on Wednesday. The current quote for the instrument is 1.1949.
Risk aversion amid a new wave of concerns about a possible global recession hurt the Pound as well. The last time the British currency was trading at its current levels was in March 2020.
The Pound was already having tough times: domestic problems relating to the inflation boost and the BoE’s hesitation, as well as political aspects involving Northern Ireland, didn’t go anywhere. Now the risks of the global recession are threatening the British economy and impairing growth prospects in the future.
Besides, the Pound is being pressured by the interruption in deliveries of natural gas from Norway. Norwegian oil producers are striking and demanding pay increases due to the inflation boost resulting in the contraction of gas production. Right now, it’s rather unclear how long the strike will last and what consequences it might have, but gas deliveries might really be at risk.
No one paid attention to the statistics. The Services PMI rose to 54.3 points in June after being 53.4 points the month before. It could have been a good piece of news, but the market is overwhelmed with emotions.
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