GBP/INR is recovering earlier losses on Friday morning. Currently, the pair is trading at 92.888, up 0.63% as of 5:50 AM UTC. On Wednesday, the price tumbled over 1.11%. Yesterday, the pair touched a daily low at 92.051, facing strong support. Relatively the same support level was tested on February 20 and February 10, but every time the price bounced back.
GBP Advances on GfK’s Sentiment Data
The pound extended its rally after GfK said that the UK consumer confidence index rose to the highest level since August 2018, though it maintains in the negative territory. The index rose to -7, from -9 in January, while analysts expected an increase to -8. While households expressed some concerns about their finances, the sentiment gauge was driven by an appetite for big purchases and the overall outlook.
GfK’s client strategy director Joe Staton commented:
“Against a February backdrop of rising wages and house prices, low unemployment and stable inflation, we report another healthy uptick in consumer confidence this month – the third monthly increase in a row. The rise in the overall index score is driven by our increasingly positive view on the state of the UK’s general economy for both the past and the next 12 months.”
GfK’s measure coincides with other indicators that suggest Britain’s economy is bouncing back after the December election.
Nevertheless, the market research firm warns that the coronavirus might affect households’ behavior and spending.
Yesterday, Northern Ireland confirmed the first case of coronavirus, bringing the total number of infections in the UK to 16.
Recently, Bank of England Governor Mark Carney told Sky News that the UK should be ready for an economic hit as a result of the coronavirus epidemic. He revealed that the central bank had already seen a decline in activity, but it was too early to estimate the impact.
The sterling has been buoyant on fresh hopes that the tensions between the UK and the European Union would ease. After releasing the negotiating strategy, UK Prime Minister Boris Johnson said that he was very optimistic about the trade talks.
“We want a great relationship with our friends. We buy huge quantities of their stuff, they buy huge quantities of our stuff. There’s just a big chance there, not just to maintain what we already have but to intensify our economic interpenetration and do more trade together,” the PM said in an interview with Sky News.
Elsewhere, the rupee is declining in anticipation of gross domestic product data to be published later today.
