The Pound continues getting cheaper. Overview for 24.08.2022

GBPUSD hit the low of March 2020; the asset remains under pressure.

The Pound Sterling hit a new bottom against the USD. The current quote for the instrument is 1.1823.

Yesterday, the Pound was testing the low it reached on 23 March 2020, at 1.1717.

Just like we said before, the Pound must be feeling much worse than other currencies due to severe domestic problems. 

The statistics published by the United Kingdom yesterday didn’t bring any relief. Preliminary reports on the Manufacturing/Services PMIs were unimpressive. The Services PMI showed 52.5 points in August after being 52.6 points the previous month (the expected reading was even worse, 51.5 points). The Manufacturing PMI dropped to 46.0 points against the July reading of 52.1 points. 

The CBI Industrial Order Expectations plunged to -7 points in August after being 8 points in July. It’s the first time the indicator is below 0 in the last 16 months. The components of the report showed that the Export Orders remained subdued at -12 points, while the Domestic Price Expectations increased to 57 points.

Apart from the latest anti-covid lockdowns, Brexit, and political turmoil, the United Kingdom has issues with energy and commodity prices, which step forward in anticipation of a heating season. All these factors taken together keep the Pound under pressure.