The UK is the only G7 economy with output below its pre-pandemic level. Economists at Rabobank expect the British Pound to remain under downward pressure over the coming months.UK is the only G7 economy not to have recovered its pre-pandemic levels
“Currently, the UK is the only G7 economy not to have recovered its pre-pandemic levels. In addition to weak growth, its fundamentals are characterised by high inflation, low productivity, weak investment growth, post-Brexit trade frictions and a current account deficit.”
“We continue to expect EUR/GBP to edge to 0.90 by the middle of the year and see scope for further dips below GBP/USD 1.20.”
EUR/USD loses recovery momentum near 1.0700
EUR/USD has lost its traction and retreated modestly after having advanced toward 1.0700 earlier in the day. The US Dollar holds its ground in the second half of the day as markets remain cautious while waiting for Tuesday’s highly-anticipated inflation data.
GBP/USD clings to modest daily gains, stays below 1.2100
GBP/USD has edged lower after having advanced above 1.2100 during the European trading hours on Monday. As investors keep a close eye on the US yields and Wall Street’s main indexes, the US Dollar stays resilient against its rivals and limits the pair’s upside for the time being.
Gold returns below $1,860 following earlier rebound
Gold price has turned south and dropped below $1,860 after having advanced toward $1,870 in the early European session. There benchmark 10-year US Treasury bond yield holds comfortably above 3.7% following last week’s rebound, not allowing XAU/USD to preserve its recovery momentum.
<a href=”https://clicks.pipaffiliates.com/c?m=7670&c=503446″><img src=”https://ads.pipaffiliates.com/i/7670?c=503446″ width=”120″ height=”600″ /></a>