It’s even scary how weak the Pound is. Overview for 30.08.2022
GBPUSD remains under pressure; the asset is trading at its 30-month lows.
On Tuesday morning, the Pound Sterling is looking as weak against the USD as before. The current quote for the instrument is 1.1715.
It appears that the British economy can’t handle one problem before another starts knocking on the door. This continuous stress makes the Pound one of the most “damaged” currencies in the last several months.
Now the United Kingdom is looking for ways to solve the energy price surge crisis. The government is working on new options to support households with energy subsidies. However, the major load will remain on consumers.
It is entirely possible that this autumn the United Kingdom will face large-scale public protests and strikes. The energy price surge pushes inflation higher, while employers don’t have any opportunities to raise salaries at the same pace.
Later in the afternoon, the United Kingdom is scheduled to report on Mortgage Approvals, which might drop a little bit in July. Another report to be published is Net Lending to Individuals for July. It is also expected to decline due to the rate hike. For the Pound, it’s moderately negative news.
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