Pound Sterling declined by 0.6% around the 1.3900 level to the USD. That happened on the European session trade on Friday. That situation was following the British economic data series in January 2021 which showed a diverse performance.
The GBP / USD was also crushed by the increased effect of the US yield treasury. However, the Pound is stronger against the Yen. The yen is the most severely affected by the USD strength lately. The England GDP showed a growth of -2.9% month-over-month.
That was for January 2021 and it was better than the estimation of -4.ö percent. The British sales deficit was also significantly decreased than the consensus estimation. However, some other data are not based on the expectation which was quite surprising.
The Data Updates so Far
The speed of yearly GDP slipped from -8.6 percent to -9.2 %. The expectation is -7.8%. The growth of industrial production and manufacture each slipped down by -1.5 percent and -2.3% month-to-month in January. The expectations are -0.6% and -0.8%.
The decline that happened on the third lockdown period in January was clearly smaller than the first lockdown in The spring of 2020. It showed the ability of the companies and houses which were increasing to adapt to the mobility limitation.
However, a year quarantine which was done in repetition has been making the social growth, job, costs, and happiness is worse. Aside from that, the economic experts are still optimistic about the England recovery prospect in the next months.
It is because England is one of the countries which are successfully executing the COVID-19 vaccination. Meanwhile, the Central Bank there also against the negative interest rate. Furthermore, some problems with the European Union were also solved.
The Discipline Vaccination Program
The level of people who accepted the vaccine dosage at the first stage must be not slowing dramatically in April. Meanwhile, the number of people who come back to accept the second dosage will be sharply increasing because of the vaccine delivery.
Some parties predicted that the vaccine delivery will be significantly increasing as well. In the end, this action must guarantee the normalization plan due to the economic activity which is made by the government. That should be done without disturbing the NHS.
Elsewhere, the index of the US dollar increased by more than 0.5% to the 91.90 level in yesterday's sales. The rose of the American yield obligation pushes the Greenback to stand up from its lowest record after the US inflation data some days ago.
That is a sign which the USD bullish is still strong enough. The 10-year obligation in the US was before slipped around 1.52% yesterday because the main inflation data of the United States were really far from the expectation. That makes the USD is weakened.
The Price Movement Is Continued
Related to all the situations that happened, the market is still moving. The US treasury yield obligation moved again to the level of 1.60%. It was a little bit lower than the highest record in a year which touched the level of 1.62 percent last week.
Many experts remain their opinion about the potential of an increase for a long-term American yield. It may reach the higher area further to maintain the potential for the USD. That currency can become stronger, especially in a middle-term period.
The next focus in the market will go to the meeting schedule of the Federal Reserve. That meeting is going to be done next week. The leader’s opinion which was obeying the obligation yield increase has been supporting the USD rally.
The same dynamic can happen if the FOMC meeting members agree for abandoning the yield increase. It means that the real dollar story is still waiting for the Fed and how this organization will play its card. The market participants still wait for that.
