Pound remains weak

31 December, 2015

The GBP/USD pair is trading lower on Wednesday, and it was the fourth consecutive day of sales of the pound.

The British Pound continues to recede in tandem with the US currency. The current quote in the GBP/USD pair is 1.4801. The pound stands at the minimum of eight and a half months.

Yesterday the fans of the pound were upset by expectations – regarding the expanding spread between the monetary policy of the ECB, the Fed and the Bank of England, and about the prospects for the New Year. The later the British regulator starts the phase of raising interest rates and the slower it will be, the greater will be the pressure on the GBP. The market is seriously discussing the probability of a referendum on the UK exit from the EU. It scares the market participants.

Today's statistics from the real estate market was not able to stop the decline of the pound. Housing prices in December rose by 4.5% y/y (0.8% m/m). It is the most powerful rate of growth since May of this year. Earlier it has repeatedly pointed to the likelihood of inflating "bubble" in the housing sector. This is confirmed by forecasts from Nationwide, the agency that monitors the real estate market. Nationwide do not exclude growth of housing prices by 3-6% during 2016.

During 2015 the British pound fell by almost 5% in tandem with the US dollar. Not a bad outcome, given the strength of the "American". But GBP still has a significant trump card: its regulator never in history went on the leash of the lobby, whatever it was. The Bank of England is conservative, but this is its strength: a step forward will be made only when the ideal time comes.

RoboForex Analytical Department


Source link  
The euro is barely moving

In anticipation of the New Year, the main currency pair, it seems, has moved into a phase of consolidation within a narrow range. The euro/dollar is barely moving on Tuesday afternoon. The current quotation of the main currency pair is 1.0972, and is slightly higher than yesterday...

Indices attempt to post December gain

Movements in the currency markets have been a little benign this week, meanwhile indices have jumped higher as Christmas cheer engulfs investors. We are still some way off where we started the month of December on European indices...

The ECB undermined the euro

On Thursday afternoon, the main currency pair remained under pressure due to yesterday's news about the readiness of the regulator to extend QE. The single European currency on Thursday afternoon is still in a weak position, as investors continue to analyze the information obtained yesterday...


Statistics have upset the Pound buyers

The British pound rose against the dollar for a third day in a row away from local minima. Current quote in the GBP/USD pair is 1.5253. Today data came out on retail sales in the UK in October...

The British pound is back to the September lows

The British Pound is weakening for the third day in a row, but it would all be well if not for the indicators of force from the "bears" in the GBP/USD pair. The current quote in the pair is 1.5127, and it is not far off from the September minimum of 1.5107...

Murrey Math Lines 04.11.2015 (EUR/USD, SILVER)

Eurodollar is still being corrected. The price is trying to stay below the 0/8 level. Possibly, on Wednesday the pair may test the previous high one more time. If the market rebounds from it again and stays below the 0/8level, I am planning to increase my position...


The dollar rose again

On Thursday morning, the main currency pair is still trading down because of mass pressure on the European currency. So, the euro/dollar in the morning on Thursday remained under pressure, although it is taking a very half-hearted attempt to win back at least a symbolic part of yesterday losses...

The yen slightly retreated

The Japanese yen was being sold yesterday and continues to be sold today. The current price of the USD/JPY pair is 119.15. Technically, the instrument clearly intends to move to 120.0 and maybe slightly higher...

The pound was hit by inflation

On Tuesday, the British Pound did not stay at week highs because of the block statistics released by the Bank of England and the statistical department of UK...

  


Share: