The Pound is trying to rise. Overview for 20.01.2022

GBPUSD has climbed into positive territory; investors believe it may continue rising.  

The British Pound is growing against the USD on Thursday. the current quote for the instrument is 1.3631.

Inflation in the United Kingdom in December demonstrated phenomenal growth and reached 5.4% y/y after being 5.1% y/y the month before and against the expected reading of 5.2% y/y. The Core CPI went from 4.0% y/y to 4.2% y/y over the same period of time. 

The RPI showed 7.5% y/y after being 7.1% y/y in the previous month. 

Escalation of inflation may force the Bank of England to raise the benchmark interest rate in the nearest future. 

The Pound is currently supported by easing of restrictions against the COVID-19 in the United Kingdom: as a matter of fact, London is unmasking and removing most of the social anti-coronavirus restrictions imposed earlier due to the Omikron strain. The government says that the vaccination has been successful and plans to cancel stay-at-home restrictions. 

However, all these things are valid only for England. Scotland, Wales, and Northern Ireland will decide for themselves.