On Monday, the pound/dollar exchange rate fell to the support level of 1.3820.
The US currency strengthened across the entire spectrum of the market after weak US labor market data on Friday ended one of the weakest weeks for the dollar with a fall. The dollar fell to its lowest level in almost a month after data showed that 235,000 new jobs were added in the US in August. Market participants are hastily revising their forecasts for an early tightening of monetary policy. The Fed has repeatedly set a stable recovery in the employment market as a benchmark. The latest data showed that there is no need to talk about stability yet, so the plans of the US Central Bank may be adjusted. Next, market participants are waiting for the meeting of the Bank of England in September. The British regulator also planned to start reducing the quantitative easing program this month. Inflation in the UK exceeds the Central Bank's target, and the economy is recovering at an active pace. However, the level of uncertainty associated with the new strain of coronavirus is now as high as possible, so it is highly likely that the Bank of England will prefer not to make quick decisions.
The forecast assumes a decline in the pound/dollar exchange rate to the levels of 1.3800, 1.3775 and 1.3750.