The Pound is afraid to move. Overview for 11.04.2022

GBPUSD remains under pressure and may start plunging at any moment. 

It seems like the Pound sterling is afraid to move at all against the USD. The current quote for the instrument is 1.3028.

The USD’s attack against the British currency is too strong. Bears may get more active and push the Pound down to the lows at any moment. 

The statistics published by the United Kingdom earlier today were weak and couldn’t support the Pound. For example, Industrial production lost 0.6% m/m in February after adding 0.7% m/m in January and against the expected reading of 0.3% m/m. The Manufacturing Production dropped 0.4% m/m after a 0.9% m/m growth in the previous month and against market expectations of 0.3% m/m. The Construction Output showed 6.1% y/y against the expected reading of 6.7% y/y. 

Problems are everywhere: interruptions in deliveries, concerns about both domestic and external demand. The March readings might be even weaker. 

The British GDP added 0.1% m/m in February, although it was expected to gain 0.2% m/m. In January, the indicator showed 0.8% m/m. The march report might show some decline due to a set of negative causes. 

It appears that the GBP gets bad news from everywhere: the strong “greenback” and the statistics, which might significantly slow down the country’s economy. Taken together, these factors are very unlikely to make anybody happy.