Forex trading. Pound/Dollar GBP/USD forecast for today, May 31, 2021
The Pound/Dollar pair is trading around 1.4180.
Last week, the British currency rose slightly against the dollar. The pound continues to receive support from the likely opening of the UK economy in June, the first of the European countries. Strong macroeconomic data allow us to count on the continuation of the trend. Market participants have so far ignored the fact that Scotland is planning to hold a referendum on independence. With a high probability, this event will not happen this year, so it will not affect the pound in the short term.
The second most important factor determining the dynamics of the pound remains attempts to anticipate further actions of the Bank of England. The range of possible measures is very wide. Last week, Bank of England spokesman Gertjan Vliege said the regulator could raise rates as early as next year if the economy recovers faster than expected. However, a scenario is still being considered in which the Central Bank will move the rate even further into the negative zone. According to the latest data, consumer inflation in the UK is growing by only 1.5%, and this is a low figure, given the active recovery in demand after the pandemic.
EUR/USD Euro Dollar forecast for May 31, 2021
The forecast assumes an increase in the Pound/Dollar exchange rate to the price values of 1.4200, 1.4230 and 1.4250.