GBPUSD keeps trying to rise but there are very few reasons for that.
The British Pound is looking up against the USD but there aren’t too many reasons for it to continue skyrocketing. The current quote for the instrument is 1.3190.
This week, starting today, the United Kingdom is scheduled to publish a lot of interesting statistics.
On Tuesday, the country will report on the Unemployment Rate, which is expected to rise from 4.5% in August to 4.8% in September. However, it’s not the worst news. In addition to that, there will be the Average Earnings, as well as the Claimant Count Change.
There are no doubts that the British labor market is experiencing difficulties. However, the thing that market players are more interested in right now is the GDP report to be published on Thursday. In the first six months of 2020, the British economy suffered a lot and the GDP growth rate plunged significantly. The recovery that followed looked very shy and cautious, and the economy is rather unlikely to recover completely until the end of the year. According to the official expectations of the Bank of England, the GDP might add 16.0% q/q in the third quarter against the first estimate of 18.0% q/q. It may well be that the actual reading, which is going to be reported in two days, will be even weaker and that’s a huge risk for the Pound.
Another risk is partial restrictions introduced in the United Kingdom on November 5th, which are intended to slow down the second wave of the pandemic. Probably, they may influence the recovery rate of the British economy – one will see how much in the 4th quarter report.
Orgin: RoboForex
