May 21st from WikiFX news. Britains inflation rate dropped to the lowest
since August, 2016, raising speculations that the Bank of England will
have to take further measures to boost demand.To get more news about WikiFX, you can visit wikifx official website.
In addition, Britan‘s CPI grew 0.8% year-on-year, lower than
economists’ expectations. The figure may kindle an even more heated
debate over whether the central bank should introduce negative interest
rate for the first time.
HSBC downgraded its forecast of GBP/USD before the end of the year
from the previous 1.35 to 1.2, while pointing out the risks including
Britains fiscal well-being(as the worst of G10 members) and Brexit: euro
is expected to rise from 0.81 to 0.87 against pound before the end of
the year, the British government again dismissed the possibility of
extending the Brexit transitional period, while it seems unlikely for
the two sides to completely settle a free trade deal before the end of
2020.
With Britain sinking into a severe recession and the economy in
sluggish recovery, structural factors may further weigh on the pound.
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