GBP: high and scary. Overview for 14.11.2022
The British pound against the US dollar is at the highs since the end of August. The current quote is 1.1789.
The main trigger for the growth of the GBP is the weakness of the USD. This is the factor that has let the pound climb up so high. Fundamentally speaking, there are very few positive factors for the GBP.
The Bank of England is trying to support optimism verbally. As the head of the institution Andrew Bailey spoke last Friday, new increases in the interest rate were very possible in upcoming few months.
He says, holding back inflation in Britain will take from eighteen to twenty-four months. Bailey finds it rational that business should manage indexing of wages, increasing payments to those employees who receive less.
Interestingly, Bailey commented on the time it would take to conquer inflation but sail nothing about the maximum size of the interest rate.
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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