The British Pound is diminishing

December 29, 2016


Crude Oil extends a row of winning trades for the eight days in a row, as the optimism over OPEC cuts in January gives a push for the price growth. It is the longest streak of gains seen with Oil for the last seven years. The European equities move at a snail’s pace, as the biggest gains were seen in the UK 100 index advance the Pounds growth.


Precious metals posted declines, led by Palladium with a 0.8% loss. Gold has flatlined, holding near a 12-month low of $1.130 per troy ounce. Together with a slide of the Japanese Yen and Swiss Franc, this signals that the risk appetite has not been affected by lowered trading volumes and holidays ahead of the New Year’s celebrations.


On the currency market, the British Pounds value has slowly been diminishing for the last several days as the Brexit fears loom large. The risk of losing single market access and the rumours surrounding the rout of the financial institutions in the UK restrain the rally attempts of the currency. Although on Wednesday, the UK housing market showed signs of a slowdown as the number of loans for the house purchases had a material lag from the original expectations. Euro caved in from 1.0450+ area to vicinities of a 14-year low at the 1.04 level. This happened on the fear that the differential between the FED and ECB stimulus will widen further in 2017.


The US Dollar soared 0.30% as major opponents lost their poise with rumours stating that the FED is going to have three more rate hikes in 2017.

Emerging Market

The emerging market equity indices trade in green driven by the gains of the energy sector. The Russian RTS rose 0.59%, Brazil Bovespa +0.13%, and the  Australian ASX 200 rose 1.01% on the upsurge of the commodity prices.

Publication source
Tickmill information  Tickmill reviews

January 18, 2017
Trump Inauguration Market Outlook
Friday, January 20, 2017 will mark the historic inauguration of what promises to be a highly unconventional US presidential administration...
January 17, 2017
Oil spikes higher on Saudi Oil minister comments
Oil has spiked higher on Al Falih comments in Davos (Saudi oil minister). He said during a panel discussion at WEF in Davos that there will be inflation in the cost of doing business in the oil industry, following the squeeze that accompanied the decline in crude prices...
January 16, 2017
GBP under pressure ahead of May speech
A speech from Theresa May is one of the key events for financial markets this week and certainly the most relevant for the British pound. Primie Minister is about to deliver a speech on UK’s stance and conditions ahead of the triggering article 50 and beginning the Brexit negotiations... Rating
Larson&Holz IT Ltd Rating
XM Rating Trade Rating
 FXTM Rating
XTB Rating

365BinaryOption Rating
OptionFair Rating
EZTrader Rating
IQ Option Rating
Banc De Binary Rating
Binary Brokerz Rating