GBP value, information and evaluation:
- After its respectable rally because the finish of final month, GBP/USD now seems prone to fall again, though it might stay across the 1.36 stage for some time first.
- Speak within the UK media of stagflation persists, and a dire set of recent automobile registration figures will do nothing to counter that narrative.
GBP/USD might maintain regular, then drop
GBP/USD is in an fascinating place, having rallied from the September 29 low at 1.3412 to round 1.36. Close to-term it might properly keep near that stage however additional losses afterwards can’t be dominated out.
GBP/USD Value Chart, Every day Timeframe (April 22 – October 5, 2021)
Supply: IG (You possibly can click on on it for a bigger picture)
UK new automobile registrations tumble
A key speaking level within the UK media – though much less so within the markets – is the specter of stagflation within the UK attributable to weak development and powerful inflation. That narrative was fed Tuesday by information that British new automobile registrations fell final month by 35% yr/yr to 214,000 models, in line with preliminary information from the Society of Motor Producers and Merchants that marked the weakest September for a minimum of 23 years.
The SMMT added that the car trade continued to be affected by a world scarcity of semiconductors utilized in automobile manufacturing.
The robust crude oil price can also be fuelling inflation expectations at a time when supply-chain disruptions proceed to plague the provision of gasoline to petrol stations in London and the south-east of England.
— Written by Martin Essex, Analyst
Be at liberty to contact me on Twitter @MartinSEssex