Britain is not alone in facing soaring price | 18 8月 2022

18 8月 2022, GBP/USD

Britain is not alone in facing soaring price

GBPUSD trading plan:

Consumer price inflation in Britain jumped to 10.1% in July, the highest since February 1982, making it the first major rich economy to see price growth hit double digits as surging food costs intensified a squeeze on household budgets. Despite warning this month that a recession was likely, the BoE raised its key rate by 0.5% to 1.75% - its first half-point rise since 1995. It saw inflation peaking at 13.3% in October, when regulated household energy prices are next due to rise. Two-year British government bond yields - which are sensitive to interest rate expectations - hit their highest since 2008 and investors priced in BoE rates peaking at 3.75% around March 2023, up from 3.25% previously. This is a positive signal for the British currency.

Investment idea: buy 1.1977 and take profit 1.2036.

David Johnson
Analyst of «FreshForex» company
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