ONLINE FOREX BROKER
2022-12-20 • Updated
Thanks to the rapid deployment of the vaccines, the virus dynamics in the UK are consistently improving. As the below charts show, the number of infections is dropping as does the mortality rate. At the moment, it’s the primary fundamental factor that lets observers assume the coming of economic recovery in the UK.
Source: https://coronavirus.data.gov.uk/
In the meantime, unemployment appears to have passed the peak in December-January – that corresponds to the peak of infections in the same period. The number of employed people grew almost 70,000 in February giving reason to assume that the jobless rate will be less than 5% in that month. In general, companies are reported to take an upward curve as they are hiring more in expectation of the ending lockdown and improved humanitarian and, hence, economic environment.
In the meantime, inflation eased to 0.4% in the UK. Analysts say it’s the result of the drop in the prices of clothes and leisure items that saw lower demand recently. However, observers comment that the stockpiles of cash accumulated over lockdowns and lower consumer activity may soon spur the economy as people are expected to spend more. The Bank of England’s target is 2% for the first part of the year. The Chancellor of the Exchequer Rishi Sunak’s policy on continuing furlough payments to the UK citizens may help reach that objective on time.
In recent months, the GBP gained significantly against the USD and the EUR. That is, despite all the Brexit hurdles and the worst economic crisis in the UK for the last 300 years. Optimism about the British economy suggests further strengthening of the pound beyond its current levels. However, another version is that as the global economy recovers with the USD and the EUR restoring their value, the pound will get back to its pre-virus levels: GBP/USD to the area of 1.30 and EUR/GBP to 0.90. The coming months will confirm – or disprove – if there will be signs of the trends that would correspond to this assumption. In any case, the economy is fundamentally on a clear recovery path in the UK.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?
The EU plans to intervene in markets directly to curb rising energy costs, threatening to push the Euro area's economy into a deep recession.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
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