Quotes continued to fall after the weak data on Friday. The UK economy contracted in January, and exports of goods and services to the European Union fell 41% from the previous month. If the pound can maintain the uptrend after the current correction, a retest of last week's high of 1.4020 is likely. It seems that after two months of growth, the British currency has not fully exhausted its potential. At the same time, much will depend on the macroeconomic indicators of the next month. If the weakening trend continues, then the pound may lose even more in value against the dollar.
Bank of England Governor Andrew Bailey said on Monday that the impact of the restrictions on the economy had been huge, but appeared to be shrinking now. The country's economy is expected to return to pre-pandemic growth levels by the end of this year. According to Bailey, the next forecasts of the Bank of England will show a lower peak in unemployment. Inflation is expected to rise to 2% in the next few months, but it is not yet known how stable it will be. In any case, a more significant strengthening of consumer prices by 4-5% is unlikely. Bailey also noted that the regulator has all the tools to implement the necessary policy.