TA GBPUSD SHORT

30 Jun 2021

The British pound hovered around $1.38 at the end of June, not far from a two-month low of $1.3787 hit earlier in the month. It also headed for a 2.8% monthly loss against the greenback, its worst month since September, as a dovish stance from the Bank of England contrasted with US Federal Reserve's surprise hawkish shift. UK policymakers left monetary policy unchanged and warned against “premature tightening” in policy until there is significant progress towards GDP and inflation goals. The central bank also said that the economy would experience a period of strong GDP growth and above-target CPI inflation as Britain's economy reopens, but they would only be temporary. Elsewhere, Prime Minister Boris Johnson signaled last week the country would push ahead with plans to ease the rules on foreign travel for fully vaccinated people. However, EU leaders agreed to step up coordination of travel restrictions, which could further hit the UK travel industry.