GBPUSD remains under bearish pressure; there is no good news.
The Pound sterling continues weakening against the USD on Thursday. the current quote for the instrument is 1.2205.
Today’s flow of statistics didn’t give the Pound a single chance to reach stability.
For example, it turned out that according to the preliminary report, the British economy added only 0.8% q/q in the first quarter of 2022 after gaining 1.3% q/q the quarter before and against the expected reading of 1.0% q/q. As for YoY, the GDP showed 8.7% against the expected reading of 9.0%.
The factors that slow down the British economy are quite common – the pandemic consequences, interruptions in the delivery chains, geopolitical tensions, and the necessity to adjust the country’s foreign policy. However, another thing that surfaces from time to time is Brexit, for example, the Northern Ireland issue. It’s kind of amazing that the status and the borders of such a small territory come with a high price tag. The lack of the Northern Ireland consensus might make trading operations and procedures between London and the European Union much more complicated, hurting the British business and GDP.
Industrial Production dropped 0.2% m/m in March against the expected growth of 0.1% m/m. It means that the negative tendency that started earlier is getting stronger: in February, the indicator lost 0.6% m/m. On YoY, it gained 1.9% against the expected reading of 2.3%. However, it’s not surprising – high inflation, the pandemic consequences, and interruptions in deliveries didn’t go anywhere and will continue to influence the economy in the future. in addition, there are problems with new orders. It’s bad news for the Pound.