The Pound found the strength to correct. Overview for 02.04.2020
Market conditions aren’t changing too much for GBPUSD but the Pound found a reason for the correction.
On Thursday afternoon, the British Pound reached stability against the USD; right now, it is slowly recovering after falling earlier. The current quote for the instrument is 1.2450.
The statistics published yesterday showed that the final report on the Manufacturing PMI was 47.8 points after being 48.0 points the month before.
According to the BRC (British Retail Consortium), the Shop Price Index showed 0.8% y/y, thus continuing the negative momentum of February. However, it’s a normal response to the decline in consumers. After the stress generated by quarantine restrictions is reduced, the British central bank will have to deal with the consequences of price crash and disinflation.
It’s interesting that Nationwide HPI added 0.8% m/m in March after expanding only by 0.3% m/m in the previous month. The indicator wasn’t expected to change.
In other words, if there is some stress in the British economy, then at the end of March it’s rather limited. Everything might have been much worse.