The Pound is not going to stop. Overview for 02.08.2022

GBPUSD is keeping the positive momentum gained earlier.

The Pound Sterling continues to rise against the USD. The current quote for the instrument is 1.2235.

The statistics published yesterday showed that Manufacturing PMI in the United Kingdom dropped to 52.1 points in July against the expected reading of 52.2 points. The indicator is slowing down in response to monetary policy tightening.

This week, the Bank of England is scheduled to have another meeting and decide on the benchmark interest rate. One of the scenarios implies a 50-point rate hike, from 1.25% to 1.75%. Investors have already received signals in favour of it. 

The rate hike will additionally reduce business activities. However, it will mean that the strategy is working and the regulator is talking control over inflation. 

The influence of domestic political turmoil on the GBP has declined in recent weeks, and it’s a good thing for the British currency.