GBP is saving strengths. Overview for 05.07.2022

GBPUSD has fixed inside the range but any risk will make it retreat.

The Pound sterling is looking rather neutral against the USD on Tuesday. The current quote for the instrument is 1.2110.

There are still a lot of risks for the British currency. One of the latest is the decline in consumer confidence, which dropped to its all-time low. Retail sales also plummeted in April and May, while the GDP lost 0.3% m/m in April. According to the Organisation for Economic Co-operation and Development, OECD), the British economy will demonstrate zero growth in 2023 and it’s rather negative information.

Politics is another thing to pay attention to. The House of Commons is currently discussing the voting bill, which, among other things, will allow the government to unilaterally alter the Northern Ireland Protocol. The bill might be very handy considering all the complications with an approximation of legislation nuances on different levels. However, the имшдд is also very likely to add more problems with sentiment in the country.

On top of that, the Pound tends to fall when global Central Banks tighten their monetary policies. This year, all major regulators, except for Japan, are following this path. 

Even disregarding the statistics, it’s quite clear that the overall picture being formed right now is rather unstable for the British currency.