On Friday, the rally in the GBP/USD pair slowed down and the instrument got stabilized close to its five weeks’ highs.
The British Pound slowed down its rally against the USD on Friday. The current quote for the instrument is 1.2982; it has grown significantly over the last three trading sessions.
The statistics published by the United Kingdom this morning was rather mixed, and the market wouldn’t have paid much attention to it if it hadn’t been for the GfK Consumer Confidence in June. The indicator decreased up to -10 points after being -5 points in May and against the expected reading of -7 points.
The decline of the Consumer Confidence index is not the best piece of news right now. It’s highly likely that on the one hand investors are under pressure from the inflation growth, which makes prices go up. However, on the other hand, there are some concerns relating to possible Brexit negotiations complications, which are easily seen by consumers and they take these concerns into account when spending money.
The final report on the country’s GDP in the first quarter showed +0.2% q/q, the same as expected. The Current Account in the first quarter was £-16.9B, although it was expected to be a bit more. The Business Investment over the same period of time added 0.6% q/q and matched the expected reading.
The GDP recovery after the decline in the past is surely a good sign, which confirms the strength of the national currency and suggests that investors consider existing risks as low. However, the Pound growth potential has its limitations after all.
RoboForex Analytical Department