GBP is rising rapidly. Overview for 12.07.2023
The British pound sterling continues to gain weight against the US dollar. The current GBPUSD quote is 1.2931.
The UK economy created 102,000 jobs in June, which is less than in May and clearly below the consensus forecast. The unemployment rate increased to 4.0% from 3.8% before. The claimant count change rose by 25.7 thousand following a 22.5 thousand decline earlier. Earnings over the three months ended in May rose 7.3% against the previous value of 7.3% (the indicator was revised upwards from 7.1%).
The Bank of England needs the employment sector to become weaker. The Central Bank is making efforts to reduce inflationary pressure, but this fight is not going the way it was planned.
The OECD believes that the UK is the only large economy where inflation continues to increase. This means that the BoE is currently losing the fight against prices and will hike interest rates further.
The expectation of further tightening of monetary conditions in the UK is the key trigger for the GBP rally.
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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