The British currency declined against the dollar to the support level of 1.3675.
Quotes fell to a three-month low, although the markets were waiting for the lifting of the quarantine in the UK. The general cautious tone meant that riskier currencies were again losing heavily to the dollar, which is considered a safe asset. Britain is facing a new wave of diseases, but Prime Minister Boris Johnson is lifting most of the restrictions, although he urges the public to remain cautious.
In mid-July, the pound had its worst week in a month against the dollar, and this downward trend continues. The data showed that the net long position of speculators on the pound fell to the lowest value since January 2021. Fears of inflation and a new wave of coronavirus remain as the main drivers of a cautious mood. London's FTSE 100 stock index fell to a two-month low. Last week, two representatives of the Bank of England surprised investors when they said that monetary policy could be tightened earlier than expected. In the coming week, the key data will be retail sales and preliminary indicators of business activity in the UK.
The forecast assumes a decline in the Pound/Dollar exchange rate to the levels of 1.3650, 1.3630 and 1.3600.