GBPUSD remains inside the downtrend and is slowly approaching the lows.
The pound sterling slowed down its decline against the USD but is still looking rather weak. The current quote for the instrument is 1.3075.
The British currency is still suffering from the USD’s attack. Another negative factor is market expectations of what might happen to interest rates in the future.
Investors believe that the Bank of England will have to raise the rate from 0.75% to 2% by the end of 2022 due to constantly increasing inflation. They are based on stable statistics, which are not showing any significant economic slump so far. In this light, the Bank of England doesn’t respond to market expectations and it makes the Pound retreat.
In the past, the BoE always adhered to the non-intervention policy and preferred to let the country’s economy regulate itself. However, nowadays this approach needs to be adjusted due to increasing outside pressure.
This week, the macroeconomic calendar has no important statistics from the United Kingdom, so the Pound is forced to move based on external conditions.
