The Pound continues growing. Overview for 19.10.2021

19.10.2021

GBPUSD is keeping its positive momentum supported by the weakness of the “greenback”. 

The British Pound continues growing against the USD on Tuesday. The current quote for the instrument is 1.3794.

The short-term weakness of the American currency caused by some mixed September statistics on industrial production provides the Pound with additional support. 

It seems like the United Kingdom overcame the fuel crisis that made people spend a lot of time queueing at petrol stations. At the same time, the consequences of supply problems are also fading away. this week, the British economy may really show how it is recovering after the COVID-related social restrictions were partially removed. 

On Wednesday, the UK is scheduled to report on prices, including the CPI, the PPI, the RPI, and the HPI. The Consumer Price Index might as well remain rather high but the Bank of England is highly unlikely to take any measures against it. 

On Friday, there will be a report on the Retail Sales for September, as well as flash releases on the Manufacturing and Services PMIs for October.

Market players are actively discussing whether the Bank of England starts tightening its monetary policy as early as November in order to raise its benchmark interest rate up to 1% in May 2022. At the same time, high inflation is still believed to be temporary. Of course, it’s possible, but the British regulator is highly unlikely to revise its policy until the end of the year. The most probable scenario implies the first steps in this direction in the first quarter of 2022 – by that time, the regulator may draw a consistent conclusion in the inflation behaviour. 

Attention!

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.