Pound may be at a bottom

18 August, 2017

The British pound has drifted lower midway through the European session, brushing off better than expected retail sales figures but some predict that the currency is reaching a bottom and now may be the time to get in.

At 2.07pm (GMT) the British currency was trading at $1.2882 down slightly down from $1.2890 in yesterday’s close.

The latest retail sales figure from the UK hit the market at 0.3 percent against analysts’ expectations for a number of 0.2 percent although the yearly figure missed consensus coming in at 1.3 percent against market predictions for a number of 1.4 percent.

This is now the 2nd time in consecutive days the market has seen positive data from Britain following on from yesterday’s jobs figures,

“It was again some good news for sterling. The labor-market report yesterday and today’s retail sales both came in above expectations” said Georgette Boele, a currency strategist at ABN Amro Bank NV in Amsterdam.

With the pound now under $1.29 some say it is a good time for buyers as the underlying factors show an undervalued currency,

“Sterling looks extremely undervalued on most measures. Brexit will change the UK’s current trade relationship with the EU, but everything has its price." noted Dean turner of UBS Wealth Management

"Indicators for the manufacturing sector show that the weaker currency is boosting export demand. It should also make the UK a relatively attractive place for foreign companies to invest. Political noise ebbs and flows and, with it, exchange rates." He added


Source link  
Only way for oil is down

The oil price has now broken down through the all important $50 mark, which is a physiological blow to any chance of a rally, and according to...

D-Day for the pound

Traders and Fund managers alike are expected to be glued to their desk on Tuesday evening UK time as the British parliament vote on the Brexit Deal put before them...

Will gold's rally continue?

After spending the majority of November range bound, the gold price has finally broken out to the upside as investors seek out safe havens from the anticipated...


Dollar could weaken for years

The US dollar has been the star performer in the currency markets this year, gaining solidly against all the major currency but some are beginning...

Gold may finally Breakout

Gold is now on track to rack up its 5th straight day of gains on the back of geo political factors as well as expectations the US Federal Reserve may...

Will gold continue rally?

For more than 2 weeks now, the gold price has been on a steady uptrend after volatility in world stock markets, and in particular, the US market which...


Pound may be headed for parity

The market had been expecting such a move so all eyes were on the following monetary statement for signs of the US central bank's future moves...

Fewer rate hikes may support gold

The Gold price has continued to rally today after yesterday's release of consumer price index figures from the US threw into doubt the ability for the US...

More rate hikes may boost pound

The British pound has been well supported over the last few days as speculation that a rebellion within against Prime Minister May's conservative party...

  


Share: