12.08.202016:51 Forex Analysis & Reviews: Euro shortly pauses growth but assures continued growth prospects

According to the latest analysts' data, the pound sterling should demonstrate a significant strengthening against the US dollar in the near future. This is indicated, for example, by the fact that extremely weak statistics on the level of the country's GDP had practically no effect on the sterling exchange rate which remained in a sedentary state.

The pound is stable both against the greenback and against the euro. It barely even reacted to the worst recession ever recorded in the UK economy. The country's GDP fell so rapidly and deeply that most analysts were not ready for it. It fell 20.4% compared to the indicators of the previous period, that is, the first quarter. Moreover, no European country has such a negative result, which cannot but cause alarm.

So far, the only more or less positive forecast is the assumption of experts that in the third quarter of this year, consumer demand from the deferred category will grow and support the recovery process in the state economy. However, the emerging tendency to cut jobs in the state by about a third do not add optimism at all but rather hints that the upward momentum will slowly fade away. Preliminary data on the labor market and unemployment rate are extremely negative, and this is a direct threat to the entire economy.

In any case, the UK will be able to return to the pre-crisis level not earlier than by the end of next year.

At the same time, the national currency of the state is doing quite well. There is every reason to believe that the pound will rise against the weakening dollar for at least another year. The morning exchange rate was already at the level of 1.3042 dollars per sterling, which is lower than the previous value by only 0.1%. The pound is stable against the euro: trading at around 0.8995 euros per sterling.