A fresh report from the Bank of England points to a 2.9% decline in British GDP in January, which is better than initial expectations, inasmuch as the monetary authorities were initially pessimistic against the background of the rapid spread of COVID-19. Covid infections and hospitalization rates have dropped notably in the past month, and the vaccination program continues at a rapid pace, which allows counting on strong GDP growth in the summer.

In the coming months, the regulator is expected to increase inflation and does not intend to introduce new stimulating measures. This is a moderately positive signal for the pound, insofar as some investment banks have recently often speculated about new incentives in Britain, which in turn will cause decline of the pound. The Bank of England has closed the matter.

Investment idea: Buy 1.3900/1.3880 and take profit 1.4000.