The Pound is not afraid for Johnson. Overview for 27.03.2020
GBPUSD continues to recover, ignoring the news about new outbreaks of the coronavirus.
The British Pound continues growing against the USD on Friday. The current quote for the instrument is 1.2227.
The national currency is not responding to the news that the British Prime Minister Boris Johnson was diagnosed with the coronavirus. The Pound remained indifferent, just like when it ignored a similar piece of news about Prince Charles.
Yesterday, the Bank of England had a scheduled meeting and decided to keep the key interest rate intact at 0.1%. The regulator has already revised the rate twice this month and the current value is the lowest ever, that’s why it was pointless to expect another cut. The Quantitative Easing program also remained unchanged at £645B.
The statistics published a bit earlier showed that the CPI in the United Kingdom in February was 1.7% y/y (the same as expected) after being 1.8% y/y in the previous month. The Core CPI also showed 1.7% y/y but still improved after being 1.5% y/y in January.
The PPI Input in February lost 1.2% m/m, better than expected but still worse than before. The PPI Output lost 0.3% m/m, although it wasn’t expected to change.
It can be clearly seen that manufacturers were the first to notice the contraction in demand and decided to revise prices in order not to increase stock reserves.