The Pound is waiting for BoE’s decisions. Overview for 24.06.2021

GBPUSD slowed down its growth; investors are waiting for signals from the regulator. 

The British Pound took a break against the USD in anticipation of the BoE meeting results. The current quote for the instrument is 1.3954.

The statistics published by the United Kingdom yesterday weren’t impressive. For example, the preliminary report on the Manufacturing PMI showed 64.2 points in June after being 65.6 points in the previous month. The Services PMI dropped from 62.9 points to 61.7 points over the same period of time. 

There is an opinion that it’s too early to consider this drawdown as a decline and the economy may be consolidating and looking for support.

Another meeting of the Bank of England is scheduled for today, so the activity in GBPUSD slowed down a bit. The benchmark interest rate is expected to remain at 0.1% but the thing that investors are waiting for is the dynamics of votes for/against the further stimulus. In addition to that, comments on the current state of the country’s economy and its outlook for the future might also be interesting.

The more confident the BoE’s rhetoric, the better for the Pound.

At the same time, the aspect that may interfere with the Pound strengthening is the dialogue between the United Kingdom and the European Union, which remains unsettled. Still, there is no consensus here, while all possible risks are slowly increasing.