The Pound is trying to rise. Overview for 12.08.2022

GBPUSD is keeping its positive momentum while the “greenback” remains weak. 

The Pound Sterling is looking good against the USD on Friday. The current quote for the instrument is 1.2178.

In the morning, the United Kingdom released a great deal of numbers. 

Industrial Production lost 0.9% m/m in June after adding 1.3% m/m in the previous month and against the expected decline of -1.3% m/m. Manufacturing Production dropped 1.6% m/m after gaining 1.7% m/m in May and against market expectations of -1.9% m/m. Construction Output showed -1.4% m/m, which is, of course, better than the “apocalyptic” forecast (-2.0%), but still not good. 

The key reason for these declines seems to be inflation, which makes businesses and enterprises cut down production to avoid the impossibility of selling goods. 

The British GDP dropped 0.6% m/m in June after adding 0.4% m/m in May and against the expected decline of 1.2% m/m.  

The preliminary GDP report for the second quarter showed -0.1% q/q. It’s better than expected, -/02% q/q, but much worse than the Q1 reading, +0.8% q/q.

All these changes are easily explained by what is happening to the British economy and outside the country. 

It’s interesting that the Pound is barely reacting to the latest statistics – after all, there is nothing really surprising in the numbers – and is trying to keep its positive momentum while the “greenback” remains weak.