GBPUSD continues rallying and updating its local highs.
The British Pound is feeling pretty fine against the USD on Tuesday morning as the instrument continues rising. The current quote for the instrument is 1.4175.
Apart from domestic news, the Pound is supported by the weakness of the American currency.
The statistics published today showed that the Unemployment Rate in the country dropped to 4.8% in March after being 4.9% the month before, although it wasn’t expected to change. It’s a good signal for the country’s economy and currency.
The Claimant Count Change showed -15.1K in April after being 10.1K in the previous month. It might be caused by the fact that businesses are slowly getting back to their normal work due to the removal of social restrictions in the United Kingdom. The vaccination campaign is bringing results and the lockdown is smoothing.
According to one of the BoE representatives, a quick recovery of the British economy should be confused with booms that sometimes take place in the economic system. It happens mostly due to low interest rates, which provide steady growth in case there are conditions for that, and expectations that consumers will soon return to their pre-covid lifestyle.
Temporarily high inflation, which may be caused by a rebound in the GDP, won’t be a problem for the British regulator – it will do its best to revise the monetary policy to make inflation return to its target level, which is 2%.