GBP is holding on to facts. Overview for 06.06.2023

The British pound sterling is attempting a local rise against the US dollar. The current GBPUSD quote is 1.2443.

The British PMI in services in May, according to the final data, rose to 55.2 points against the preliminary 55.1 points. Compared to the April reading (55.9 points), there is clearly a fall.

The decline in the PMI is a vivid illustration of the true state of the British economy. With ever-increasing prices, the need for wage indexation, and total control over costs, business is gradually weakening. This is dangerous.

The facts are that the Bank of England is likely to continue to raise interest rates on the back of high core inflation in the country. This provides the pound with some local support. At the same time, spot interest to risk is limiting the growth of the USD and helping other currencies to stabilise.