The Pound is falling again. Overview for 07.10.2021

After a recent recovery, GBPUSD is falling again; the strong “greenback” is putting a lot of pressure. 

The British Pound is retreating against the USD on Thursday. the current quote for the instrument is 1.3593.

This week, there aren’t many significant statistics for the United Kingdom. The country reported on the Services PMI, which expanded up to 55.4 points in September after being 54.6 points in August. 

Another release showed that the Construction PMI in September dropped to 52.6 points after being 55.2 points the month before. 

The Pound got under significant pressure from the “greenback”, which has tremendous support from the rally in the US 10-year bond yield. The British currency has nothing to show for. 

Instead, the British Pound and the United Kingdom have a huge uncertainty with different supply chains that comes from Brexit and the transition period because there are a lot of disagreements. The British authorities still believe that the transition period will result in a better economic structure with more effective production and higher salaries. However, investors and businesses would like to see more strengths in fundamental parameters. The latest fluctuations of the national currency showed this quite well. 

The salary issue in the British economy remains problematic despite the fact that in some areas and sectors salaries are rising. For a more stable economy, it is necessary that the salary growth was higher than inflation but right now it’s very difficult.