GBP achieves correction. Overview for 23.08.2023

The British pound sterling paired with the US dollar found a foothold by the middle of the week. The current GBPUSD exchange rate stands at 1.2752.

Strategically speaking, GBP is in a consolidation phase in a wide range.

From a fundamental point of view, the pound's positioning has improved slightly after investors' risk appetite rose. Earlier in the week, demand for safe-haven assets was strong due to rising US Treasury bond yields and concerns over the alarming state of the Chinese economy. During this time, the US dollar enjoyed a blaze of market glory. However, on Tuesday, both these factors lost their former acuteness. This allowed risk-sensitive currencies to stabilise.

Statistical data from the UK published yesterday showed that industrial production in the three months ending in August fell at the highest rate since autumn 2020. This hardly adds to GBP optimism.

However, the UK budget figures in July looked more favourable than before, as the deficit narrowed. This supported the GBP's position.

On a global scale, GBP behaviour is currently more dependent on risk attitude than on statistics.