The Pound is slowly growing. Overview for 21.10.2021

21.10.2021

GBPUSD continues trading moving upwards notwithstanding short pauses. 

The British Pound is retreating a little bit against the USD but the overall tendency remains bullish. The current quote for the instrument is 1.3802.

In some way, the Pound is capitalising on the situation rising because the “greenback” remains static. It helps the British currency to rise while domestic news tends to be rather mixed. 

According to the Reuters survey, the Bank of England may become the first of all global Central Bank to raise its benchmark interest rate after the pandemic is over. Current market expectations imply that the British regulator may raise the rate by 15 basis points, up to 0.25% in the first quarter of 2022, February or March. Earlier, it was believed that the BoE wouldn’t do it until the fourth quarter of 2021. 

A small part of respondents, one-fifth, believe that the Bank of England will raise the rate during its meeting on 15 November.  

Some other numbers show that in the fourth quarter of 2021 the British economy may add only 1.1% against the previous expectations of 1.5%. Overall, this year the economy is expected to expand by 6.8%, while 2022 may show 5%. 

As for inflation, in the first quarter of 2022, it may reach 4%. However, after that, the indicator is expected to fall: 3.5% in the second quarter and 2.7% in the third one. 

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.