The exchange rate of the Pound/Dollar pair fell to the support of 1.4150.
Without any new fundamental developments, fears of the long-term impact of Brexit and the economic damage from the pandemic acted as a barrier to the British Pound. A combination of factors helped limit the pair's more serious losses. Investors remain optimistic about the UK's economic outlook amid impressive vaccination rates and easing of isolation measures. The government's plan to completely lift the restrictions on June 21 remains in force. Thus, the opening of the national economy will ensure the activity of buyers of the pound and support the currency against the US Dollar.
Bank of England Governor Andrew Daly said on Monday that inflation expectations remained subdued. The governor of the Central Bank noted that short-term changes in the consumer price index should not have direct consequences for inflation in the medium term. The Bank of England's monetary committee believes the UK's GDP growth rate is slowing as supply returns to its subdued long-term trend. At present, the monetary committee does not think that a negative rate will be required. The British regulator will return to changing monetary policy in the second half of the year and will act depending on the level of inflation and economic growth.
Signals for trading GBP/USD currency pair
In the forecast, the Pound/Dollar exchange rate is expected to decline to the supports of 1.4125, 1.4100 and 1.3970.