The Pound US dollar (GBP / USD) exchange rate has a chance to slip down. It is especially if the BOJ or the Bank of England fails to make the same position to the hawkish tone from the Federal Reserve. 

The development about the coronavrus and re-opening the lockdown action are also the factors that can hit the Pound movement. When this news was written, the GBP was sold in USD $1.3755.

That slipped by 0.3% in the opening level this morning. Pound (GBP) has been falling to the USD for severally days lately. It directs to the worst week in a month so far.

Although the hawkish change from the two interest rate deciders in the Bank of England, Saunder gave his statement. They are still far from the policy changing and that gives a pressure for the Pound. 

The Challenge Faced by Poundsterling 

The analyst stated that Pound is now faxing a challenge as an impact of the increasing covid cases. It is because the delta varian is spreading in the United Kingdom right now. 

The concern about the rising hospitalization which comes in the Freedom Day in 19 of July has been worsening by a comment. That came from the head of Medical Staff in that country. 

His name is Chris Witty who stated that they can get the other problems quickly. Besides that, the analysts has been seeing that the business is facing the pressure right now. 

It is especially at the end of the fiscal support steps are getting closer. The release of the leave scheme could be more disruptive than expected. That is as the economy faces an inevitable health care burden.

Several Supports for Pound

The BOE speech on Monday maybe offers some supports for the Pound. However, the Sterling as the whole component is still under pressure. Jerome Powell as the Federal Reserve chief said something. 

He stated that the inflation is still far from the target. However, bank is now considering about the economy progress. The consumers price inflation and producers are higher than the expectation. 

It is especially in the June Period. However, the next doubt is then balanced by the stronger retail data than the expectation. Meanwhile, the news come from the OPEC+ minister. 

They agreed that on Monday they will increase the oil stock from the August. It is done to redeem the price which has been increasing to the highest level in 2.5 years period.. 

The New Production Allocation is Agreed

The rising price is caused by the recovered global economy from the coronavirus pandemic. That organization crucially agreed the new production allocation from the May 2022.

It is especially after the Saudi Arabia and the other countries agreeing the demand from the uea which can threat the plan. They are so happy with that agreement that has been made. 

It was stated by the UEA energy Minister, Suhail bin Mohammed Al – Mazroui in a press conference moment. The Saudi energy minister Prince Abdulaziz bin Salman declined to answer questions.

That is especially about how the compromise was reached. OPEC+ last year cut the production by a record 10 million barrels per day (bph) amid a drop in demand caused by the pandemic and falling prices. 

The Stocks will be Increased 

It gradually restored some supplies to leave it with a reduction of about 5.8 million barrels per day. From August to December 2021, the group will increase supply by 2 million barrels per day.

That is about 0.4 million barrels per day per month like what the OPEC said in a statement. The group has agreed to extend their overall pact until the end of 2022 or next year. 

That is counted from a previously planned date of April 2022. It is done to provide more room for manoeuvre if the global recovery is halted due to a new virus variant.