GBP is inclined down. Overview for 22.12.2022

On Thursday, the British pound against the US dollar is trying to grow. The current quote is 1.2117.

The British statistics yesterday was cheerful. The CBI retail sales balance in December grew to 11 points from -19 points, while it had been expected to drop to -24 points. This is good news for the economy, though it has to be confirmed officially.

Over 2022, the pound has dropped by 11% against the USD and by almost 4% against the EUR. Over the nearest months, the GBP might remain quite weak.

For the pound to start growing, the following conditions should be met:

• Labour productivity must grow.
• Growth of investments must be higher than average.
• Northern Ireland protocol must develop by a good scenario.
• Rishi Sunak’s party policy must become more adaptive and aggressive.

If at least some of these conditions get fulfilled, the pound will get a strong foothold.