The British currency rose against the US dollar to the ratio of 1.3965. The pound has been strengthening for five consecutive sessions against the background of the fall in the US currency exchange rate across the entire spectrum of the market.
Fed Chairman Jerome Powell said that raising rates is a long way, making market participants doubt the near tightening of monetary policy. The exchange rate of the pound/dollar pair has reached a more than one-month high and retains the potential for further growth. The number of cases in the UK is increasing, but not at a dramatic pace. There are no prerequisites for the fact that the national economy will be closed again. As a result, traders are counting on strong indicators of the country's economic growth in the third or fourth quarters.
Next week, market participants will pay attention to the Bank of England, which is likely to continue to stimulate the economy in full. Two representatives of the Central Bank previously noted that the quantitative easing program worth almost 900 billion pounds may have to be stopped earlier when inflation accelerates. Nevertheless, the British regulator maintains its position unchanged and does not plan to ease monetary policy in the coming months.
The forecast assumes a decline in the pound/dollar exchange rate to the support levels of 1.3950, 1.3930 and 1.3900.