The Pound improved pretty well. Overview for 23.06.2020

GBPUSD continues trading upwards on Tuesday. 

After completing a correctional rebound yesterday, the British Pound remains in the “black” against the USD. The current quote for the instrument is 1.2491.

A couple of preliminary reports published today by the United Kingdom showed that the Manufacturing PMI recovered up to 50.1 points in June after being 40.7 points in May, while the Services PMI was 47.0 points against 29.0 points over the same period of time. 

It can be clearly seen that the services sector is reviving as consumers are slowly getting back to their pre-crisis routine – earlier, the sector plummeted due to great damage to a lot of businesses and enterprises but now one can see it recover pretty dynamically. Any reading that is above 50 points demonstrates improvements – this is exactly what is happening right now in the manufacturing sector. The services sector is believed to join this tendency quite soon. 

Today is June 23rd, which means it’s been four years since the popular referendum on the Brexit. On this date, in 2016, 51.9% of voters opted for exiting the European Union. After that, there were three and a half years of heated debates, negotiations, replacements of the British Prime Minister (twice), and finally, on January 31st, 2020, the country did deliver its intention to exit the alliance. At the moment, both parties are in some kind of a transition period, when their representatives are trying to reach a consensus on many issues, from trading to legal nuances. Everything is extremely slow and complicated due to a lot of fractions. In this light, the Pound remains under pressure. If it weren’t for the Brexit and Brexit-related stresses, the British Currency would trade 7-10% higher than now.