GBPUSD has been falling for the third consecutive trading session; the Pound may return to its March lows.
The British Pound is looking rather weak against the USD on Tuesday. The current quote for the instrument is 1.3763.
Yesterday, the United Kingdom reported on the Mortgage Approvals and it was rather mixed. The indicator showed 88K in February after being 97K the month before. The decline is quite unlikely to have happened due to the decrease in the population’s purchasing power. The most probable reason is the active lockdown and weather conditions. The Net Lending to Individuals showed £4.9B in February after being £2.6B in the previous month. This is the indicator that has nothing to do with the weather – probably, consumers are preparing for the removal of social restrictions.
British households are quite active in making payments towards their loans. It’s rather unusual because the population doesn’t have much money to spend, the labor market is not looking too healthy, and personal savings have “melted” pretty much during the lockdown.
Nevertheless, the IHS Markit shows 42 points in the first quarter of 2021 after being 41.1 points the quarter before. In the case of this indicator, 50 points is a psychologically-crucial level, which separates decline from growth, and this level is still quite far away.
Brits are focused on making payments towards their previous loans and don’t want to take out a mortgage but take consumer credits – probably because they are running out of their own money.
So far, the external fundamental background is looking rather gloomy for the British Pound, both due to the strong USD and continuing lockdown. The national currency might get some support from the vaccination campaign but there is too little news about it.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.