The Pound updates six months lows. Overview for 10.07.2019

GBPUSD remains under pressure on Wednesday; the pair needs serious reason for recovery.

The British Pound is still under significant pressure against the USD in the middle of the week. The current quote for the instrument is 1.2464. 

It’s pretty difficult to find anything that may have positive influence on the British currency and break the current stable bearish trend. The Brexit is not on the list of possible positive catalysts, because British policymakers still haven’t agreed on the deal. 

The numbers that the United Kingdom has been publishing recently clearly indicate the slowdown of the key macroeconomic parameters. It is reasonable to expect that the country’s GDP may also deteriorate in the second quarter 2019. In this case, the Bank of England is expected to sound even “softer” during its August meeting. 

On Wednesday, the United Kingdom is scheduled to report on the Industrial Production, which is expected to recover by 1.6% m/m in May after losing 2.7% m/m the month before. If the actual reading matches market expectations, the Pound will find some support. The Construction Output may expand by 0.4% m/m in May after losing the same amount in April. The Manufacturing Production is expected to add 2.2% m/m in May after showing -3.9% m/m in the previous month. 

The GDP may show +0.3 m/m, which is better than -0.4% m/m in April. 

If today’s numbers confirm that April declines were just temporary, the Pound may count on a slight recovery.