The BoE facing a jump in inflation

14 October 2021, GBP/USD

The BoE facing a jump in inflation

GBPUSD trading plan:

UK Gross domestic product grew by 0.4% in August, after it was revised down to show a drop of 0.1% in July when staff absences linked to the Delta variant of COVID-19 peaked. After the latest official data, Britain's economy is now within 0.8% of its pre-pandemic size - a much smaller gap than when the last monthly figures were released thanks to upward revisions to output growth earlier in the year. The BoE, facing a jump in inflation, looks set to be the first major central bank to raise interest rates since the start of the pandemic. Investors are betting on a rise to 0.25% by the end of December, up from its all-time low of 0.1%.This is a positive signal for the British currency.

Investment idea: buy 1.3660 and take profit 1.3725.

David Johnson
Analyst of «FreshForex» company
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