The Pound intends to rise. Overview for 26.10.2021

GBPUSD is keeping its positive momentum and hoping to continue rising. 

The British Pound is rising against the USD on Tuesday afternoon. The current quote for the instrument is 1.3776.

No important statistics from the United Kingdom are planned for this week, that’s why investors are still focusing on what is happening outside the country and the things said by monetary policymakers. 

The BoE representative said yesterday that it was the increasing prices for raw materials that had a significant influence on inflation in the country – it can be seen since August. Some inflation drivers should be short-term, the same as supply shortages. However, the key unknown variable is the lack of understanding of how soon the whole world, and the United Kingdom, will get back to its normal life. 

As for inflation in the country, there is an opinion that a lot will depend on the employment sector. After the labour market support programme for the lockdown period is over, it will be easier to analyse the overall picture. In the meantime, the employment sector is reaching stability, although very slowly.

There is an opinion that the British GDP may continue falling in winter and that’s not good news, especially if this opinion comes from monetary policymakers. 

However, the Pound barely responds to questionable opinions and conclusions and continues moving within its trend.