GBPUSD plummeted yesterday after the United Kingdom published some statistics and is still retreating.
The British Pound remains as weak against the USD on Thursday afternoon as yesterday. The current quote for the instrument is 1.4022.
The statistics published yesterday were pretty disappointing. For example, the GDP showed -1.5% q/q in the first quarter of 2021 after being 1.3% q/q the quarter before. A long lockdown period doesn’t help the economy: closed educational institutions and declines in retail sales were against the statistics.
On YoY, the indicator lost 6.1%. According to ONS, the current GDP value is 8.7% lower than the pre-pandemic.
However, the country’s economy revived a bit in March and showed 2.1%, which was the highest growth since August 2020. Some British schools opened early in spring and boosted the economy a little bit. As they say in Her Majesty's Treasury, the March economic growth is looking very promising despite hard times early in the year.
In the meantime, the Bank of England doesn’t seem to worry about global economic parameters so far. According to one of the policymakers who spoke yesterday, mid-term inflation prospects in the country didn’t look alarming and were not considered as causes for concern. The short-term price pressure in the United Kingdom may surely take place due to complications with the supply chain but later the economy will recover after the pandemic.
Today, just like yesterday, market players are expecting the speech from the BoE Governor Andrew Bailey.
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.