The Pound is at crossroads in anticipation of new data. Overview for 16.07.2020

The British Pound moved downwards on Thursday because market players’ attitude to risks got much worse, thus making the USD more attractive as a “safe haven” asset. Another factor in favor of the USD was the weak statistics from China. Today’s low in GBPUSD was at 1.2520, which is 70 pips lower than the opening price.

However, in anticipation of the Unemployment Claims report from the USA, the instrument managed to recover up to 1.2565.

The British currency is currently supported by the ECB decision to keep its rates unchanged and continue with its stimulus program. no matter what but the United Kingdom is still dependent on the Euro Area.

In the future, the Pound may remain under pressure due to the disappointing data on the Unemployment Rate, which remained at 3.9%. However, the indicator is expected to rise later because the British government will close the program on the preservation of jobs. 

On Friday, the pair may get more volatile as the Bank of England Governor Andrew Bailey is scheduled to speak. In addition to that, the UK is going to report on the Gfk Consumer Confidence in July and the Retail Sales in June. Right now, the British currency is very sensitive to such data. 

Fundamentally, the pair may rise due to some good news from the Euro Area but on the other hand, it may fall because of the unemployment. Probably, tomorrow’s speech of the head of the British regulator will clear things up to help investors to decide on the price movement direction.