The British currency continues to recover against the US dollar, the quotes have reached the price value of 1.3760.
The dollar is losing ground against leading currencies and especially defensive ones after initial applications for unemployment benefits unexpectedly increased in the US, and the Federal Reserve Bank of Chicago's activity index for June did not meet estimates. The US currency index fell by 0.1% and is near a weekly low.
The number of Americans who filed new applications for unemployment benefits unexpectedly increased last week. But this probably does not mean a significant change in labor market conditions, since one more month of significant employment growth is expected in July. Initial applications for state unemployment benefits increased to a seasonally adjusted 419,000 for the week, the Labor Department said. Economists polled by Reuters had forecast 350,000 applications for the last week.
Commenting on inflation and the economy, the deputy governor of the Bank of England, Ben Broadbent, said on Thursday that an adequate response to rising prices may be the absence of any action. Broadbent stressed that the increase in inflation is temporary, although the scale of the phenomenon was unexpected for the regulator. To a large extent, the current increase in the consumer price index is actually directly related to higher oil prices, which are likely to fall in early 2022.
The forecast assumes a decline in the Pound/Dollar exchange rate to the levels of 1.3740, 1.3720 and 1.3700.