GBP remains cheerful. Overview for 13.06.2023
The British pound sterling has returned to growth against the US dollar. The current GBPUSD quote is 1.2560.
The British statistical data published the day before came out mixed and highly interesting. The unemployment rate dropped to 3.8% in the three months ending in April against the 4.0% forecast. The growth rate of average earnings excluding bonuses reached a post-pandemic high.
All this is surprising because the consensus forecast implied a weakening in the employment sector after 12 consecutive interest rate hikes. Instead, labour shortages are impacting wage dynamics. The labour market has shrunk, and wages have risen markedly. Collectively, all these factors could easily increase inflationary pressures. Such facts will now be of serious concern to the Bank of England.
The BoE is expected to continue to raise interest rates this summer. The next meeting is scheduled for 22 June, during which the lending rate will increase to 4.75% per annum.
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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