GBP aiming at new highs. Overview for 17.11.2022

gbp-aiming-at-new-highs-overview-for-1711.2022

The British pound against the US dollar is aiming up high. The current quote is 1.1910.

Sky-rocketing of British inflation and verbal interventions of the Bank of England have given the pound a foothold for growth. No one knows whether for long or not, yet for now the GBP is growing.

The British CPI in October grew to 11.1% y/y, which is the high of 41 years. This is much higher than the expected 10.1%. Month-wise, the growth amounted to 2% m/m. This is too much for conservative England.

Retail prices grew by 14.2% y/y against the forecast 13.5%.

Prices are to be attended to ASAP and without hesitations. The longer inflation will remain high, the more damage it does to the economy.

The head of the BoE Andrew Bailey in his speech delivered yesterday to the Special Treasury Committee, voiced their plans for further increasing the rates. He concludes that the bigger part of risk bonuses bound to Britain is gone from the market but not altogether.

Why have the pound grown them if the statistics is quite weak? The answer is simple: investors think that the BoE will tighten the monetary policy faster. Such forecasts have no foundation because the BoE have said many times that has no such plans.

Source: Roboforex

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