The Pound is fighting gravity. Overview for 11.06.2020

11.06.2020

After updating its three-month highs, GBPUSD is correcting but the Pound is retreating unwillingly. 

On Thursday afternoon, the British Pound is correcting against the USD. The current quote for the instrument is 1.2665. Yesterday, the Pound updated its three-month highs. 

The Governor of the Bank of England Andrew Bailey told the media yesterday that the British economy was giving weak signals of recovery and that’s good news. The problem is that the recovery process will take time. Much time. The current downturn in the country’s economy is very unusual, that’s why one might be able to see some optimist and recovery after the quarantine restrictions are removed. However, it’s not a proper improvement the United Kingdom got used to. 

After the quarantine is over, consumers will be very cautious with their money and it’s quite okay. There will be fewer visitors in cafes, restaurants, recreational centers, and multiplexes, in other words, the places, where people used to spend much money. But as long as consumers are stressed, there won’t be much spending. 

According to the BoE’s forecasts, the British economy will require at least 2-3 years to recover after the coronavirus pandemic. Most likely, it’s true and it will be more difficult for the segments that are closely connected to social contacts. 

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.