Today on Tuesday (June 28), the GBPUSD opened at 1.0065 and closed at 1.22671 yesterday. So far, the highest has touched 1.2280 and the lowest has been 1.2259 . Temporarily reported 1.2278, an increase of 0.09%. The euro and the dollar were temporarily reported at 1.0578, down 0.03%; the US dollar and Canadian dollar were temporarily reported at 1.2861, down 0.14%.
Prime Minister Boris Johnson said on Saturday his aim was to stay in power until the middle of the next decade, despite calls for him to resign. If successful, he will become Britain’s longest-reigning leader in 200 years.
Market research firm GfK Ltd. said its consumer confidence index fell 1 point to -41 in June, the lowest level in the survey’s 48-year history. The risk of a recession weighed on consumers’ perceptions of their financial health and the outlook for the broader economy.
Based on the above news, it can be seen that even if Johnson strives to extend his term in office, the British political situation is expected to be stable, but the British economy still faces many challenges due to the epidemic. If Johnson fails to implement strong policies to boost the economy during his term in office, it will be difficult for the pound to rebound, and investors need to be vigilant.
KPMG has raised its UK inflation forecast, expecting inflation to average 8.1% in 2022, up from 7.9% in its April report. “We expect inflation to normalise from the second quarter of 2023 and return to the Bank of England’s 2% target by the second quarter of 2024,” Selfin said.
When it comes to BoE policy, KPMG is in the dovish camp of economists, arguing that the Bank of England will not raise interest rates further.
They see only two more rate hikes by the Bank of England in 2022, as the Monetary Policy Committee will have to weigh the risk of high inflation affecting pay growth against the risk of a recession.