GBP decline speeds up. Overview 17.07.2019.


The GBP has sped up its decline against the USD upon worsening of the argument about the exit of Great Britain from the EU. Current quotation is 1.2390.

Argument of the Conservatives has done the pound really bad. On the whole, everything that has been happening around Brexit lately only enhances fear of the most stressing and tough scenario.

Meanwhile, Great Britain keeps publishing a large block of macroeconomic data. Today they are devoted to the price situation. Consumer price index in the country in June could remain at 2% (calculated yearly), and the fact that the inflation does not go down looks positive both for the pound and the current policy of the Bank of England; there is no need of mitigation right now. Basic inflation in June could have grown by 1.8% against 1.7% earlier (counted yearly), which is also good.

Producer price index at entry (price of goods and commodities for producers, before those goods go to production) could drop by 1% (calculated monthly) last month; previously they were at 0. This is a leading indicator of consumer inflation and should be treated attentively. Producer price index at exit, in its turn, could rise by 0.1% (calculated monthly) in June after an increase by 0.3% in May.


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.