The Pound hopes to grow. Overview for 05.08.2020

05.08.2020

GBPUSD is trying to rise but the impulse isn’t strong enough.

The British Pound is slowly growing against the USD on Wednesday. The current quote for the instrument is 1.3090.

Today, the United Kingdom is scheduled to report on the Services PMI in July, which is expected to remain unchanged at 56.6 points. However, if it improves, the Pound will get additional support. 

The key highlight for the Pound will take place on Thursday – the Bank of England will have another meeting. The regulator is not expected to introduce any changes to its monetary policy because it is interested in keeping the balance in the country’s finance and economy.

The interest rate is expected to remain at 0.10%, which, in general, suits the current economic situation. However, it is quite possible that the pressure on the BoE may increase towards autumn – policymakers and economists may want the British GDP to recover more quickly. It means that the date when the British regulator will revise its policy is just a question of time. 

The United Kingdom will have enough risks in the second half of 2020, from a slow recovery of the GDP and the weak employment market to the second wave of COVID-19 pandemic and Brexit issues. All these factors taken together prevent the Pound from rising.

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.