Pound Sterling was sharply fluctuated since the opening of this week. The GBP/USF has been slipped for about 0.7 percent to the lowest level of 1.3640 yesterday. 

That was happened before it is rising 0.25% to the level of 1.3690 this day. Some analysts predicted that Sterling will continue to be underpressured ahead the Bank of England policy meeting. 

On Monday, Gazprom chose not to send the gas to Europe via Ukraine in October. The Telegraph reported that Russian gas supplies via the Yamal-Europe pipeline will also remain limited. 

Just months ahead of winter (a period when gas demand typically soars), new storage sites are filled 72 percent. This is the lowest winter inventory level in more than a decade.

The Price is Rising Sharply

Those are the reasons why the gas price is rising sharply right now. The gradual contract for that commodity is even rising by 16 percent on Monday. 

This crisis is especially bad for Britain Due to a reason so far. The British people use gas as the main source of energy, even though the UK is a net importer for this commodity. 

The government limits gas prices as a vital need for the public, but the restrictions are suffocating British gas companies as commodity prices soar. There is a surprising thing. 

Four small energy companies have ceased their operations in the past four weeks. Meanwhile Britain's biggest carbon dioxide producer also halted some of its activities last week. 

A Dilemma Situation for the Investors

This is likely to have not only an impact on the UK's energy supply, but also other sectors. One of them, the agricultural sector that relies on fertilizers made from carbon dioxide.

For the traders and investors, the energy crisis presents a dilemma for their further decision. On the one hand, the increase in energy prices will increase inflation even higher than before. 

Surge in inflation supports expectations of faster BoE rate hikes as well. On the other hand, more expensive energy prices will depress the consumer spending, industrial production, and economic growth. 

The BoE could likely delay a rate hike if the energy price hike actually has a very broad impact. They maintain their careful action to the GBP because of the weight on supply limitation.

The Higher Tax Plan may be done

The investors are also highlighting on some aspects such as the ended government fund help and the higher tax. The market has been measured the interest rate increase twice on 2022.

So, the risk is that data makes the tightening is scary. The growth momentum is not only slowing down, but also sharply decrease more than what people are predicted. 

Sterling is now facing the double pressure from the safe haven greenback and the declining global stocks. They are weighting on the risk and press the United Kingdom Currency. 

That was stated by Joe Manimbo, the senior market analyst from the Western Union. The markey is now having the declining movement performance and that may trigger a situation. 

Sterling was Stable for a while

The declining movement performance can make the selling action is happened again for several days in the future. It is especially after the waves of resistance are formed. 

Sterling was just stabilized for a little yesterday. That is especially after the mass media reported that the united Kingdom government has been considering the debt plan. 

That debt program is for the energy companies. The government also states that they will provide a form of the economic fund for the carbon – dioxide enterprises. 

Those are the enterprises such supply for more than 60% of the country’s needs. That is done to make sure that the chain and wheel can be continued normally without any problems.