The Pound braces its fall. Overview for 15.12.2021

GBPUSD is trying to keep its sideways tendency and avoid further decline. 

The British Pound is growing a little bit against the USD on Wednesday. The current quote for the instrument is 1.3273.

The statistics published earlier showed that the Unemployment Rate in the United Kingdom was 4.2% in October, the same as expected. The actual reading is 0.2% higher than the pre-pandemic value, and that’s good news. The Claimant Count Change showed -49.8K in November after being -14.9K in the previous month. This factor will also provide great support to the British economy. 

Stable numbers helped the Pound to continue its recovery, which started when the “greenback” took a break. 

The International Monetary Fund believes that the British economy may add 6.8% in 2021. Expectations for 2022 imply 5.0%. Inflation in the country may reach its peak of 5.5% in spring 2022 and resume falling after that. 

The Fund thinks that the United Kingdom will introduce coronavirus-related restrictions due to the Omikron strain, that’s why its economy may slow down a bit early in 2022. 

As for the Bank of England, it’s high time to close the QE programme. At the same time, the accommodation monetary policy should remain in force.