GBP is confident. Overview for 12.12.2022

On Monday, the British pound against the US dollar is decreasing a bit. The current quote is 1.2240.

Nonetheless, the pound looks stable even with the domestic events and news.

Morning statistics from Great Britain demonstrated that industrial production in October dropped by 2.3% y/y, which turned out better than the forecast of 2.8% and the previous result of -3.1%. Month-wise, industrial production demonstrated a zero change, while growth by 0.1% had been expected.

The final GDP in Q3 demonstrated growth by 1.5% y/y, while the forecast had been plus 1.4%. On the whole, statistics looks rather nice, though gives no support to the pound.

This week, the pound will have quite a bunch of reasons for reaction. On Tuesday, employment sector statistics are due, and they are likely to be quite conservative. On Thursday, the Bank of England will have a meeting and most likely will increase the interest rate by 50 base points at once in order to withstand inflation.