The Pound remains weak. Overview for 19.06.2019

GBPUSD recovered a little bit in the middle of the week, but remains very weak.

The British Pound is still influenced by elections of the new head of their Government. The current quote for GBPUSD is 1.2557.

The future of Brexit is looking much vaguer as the British policymakers continue playing their games. In this light, outflow of capital from the British economy may increase, thus making the country dependent on foreign investments. 

The United Kingdom is going to report on the prices today. Market players should pay attention to the PPI Input, which may add 0.2% m/m in May after expanding by 1.1% m/m the month before. The PPI Output is expected to increase by the same 0.2% m/m after adding 0.3% m/m in the previous month. Another report, the CPI, may show 2.0% y/y after being 2.1% in April. The British inflation is quite volatile, but there are factors indicating decline, it will be considered as negative. 

Apart from this, the UK will publish the CBI Industrial Order Expectations report for June. Most likely, the indicator will decrease to -11 points after being -10 points in May. The values above zero show increase in number of order, below zero – the opposite way. The negative value is pretty bad for the Pound.