On late Thursday afternoon, the GBP/USD pair is trading upwards, although there a few fundamental reasons for this.
Well, there are no reasons at all, if to be more exact. The British statistics published today was disappointing and the Pound would return to sales if it weren’t for anti-Dollar sentiments after another meeting of the ECB. It looks like the British Pound is simply following some global sentiments. The current quote for the GBP/USD instrument is 1.4428.
Retails sales in March in the UK decreased by 1.3% m/m against the expected number of 0.1% and the previous decrease of 0.5% m/m. On a year-on-year basis, the indicator reduced by 2.7% against 3.6% the month before. The CPI excluding all volatile goods would fall in March anyway – by 1.6% against baseline sales of 0.3% in February.
So, the indicator turned out to be more than “uncheerful”: decrease in retail sales shows that consumers are willing to save money and it is usually can be seen during the period of economic stagnation. However, in case of the United Kingdom, one can hardly speak about the stagnation as the economy is gradually expanding. Probably, it means that the population does not have much believe in perspectives.
According to reports published on Thursday, the March budget deficit in the UK reduced. The previous financial year finished exactly last month. Regarding last year’s results, the budget deficit in the UK was 74 billion Pounds (reduced by 17.7 billion). The target set by the government was 72.2 billion. The British nation knows how to save money the way no one else does. It means that in the new financial year the deficit will continue to be cut.
RoboForex Analytical Department
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