Pound Sterling’s Foggy Future
Weaker recoveries were seen in both the UK manufacturing and service sectors, with the latter recording the greatest loss of momentum since July.
GBP/USD: outlook for August 21-25
2019-11-11 • Updated
Reports released this week in the UK showed a mixed picture. Consumer price inflation in Britain unexpectedly held steady in July at an annual rate of 2.6%, despite the fact that analysts were looking forward to a higher number. This news diminishes the pressure on the Bank of England to raise interest rates – not a positive factor for the pound. Retail sales growth exceeded forecasts on the monthly basis, although advance of the indicator in 3 months through July was the weakest in almost 4 years.
In the coming days, Britain will release the second estimate of its GDP growth in the second quarter. According to the initial data, the UK economy expanded by only 0.3% – that’s weak in comparison with last year’s figures.
Uncertainty about Brexit and global risk concerns are having a negative impact on the British currency.
GBP/USD broke below the 50-day MA at 1.2930 at the start of the week and is now consolidating above the 100-day MA at 1.2870. The pair’s currently trading at support line, which connects March and June lows. Decline below the recent lows and 61.8% retracement of June-August rally will open the way down towards the next Fibo level at 1.2735 and 200-day MA at 1.2640. Resistance levels are at 1.2930 and 1.3000.
Similar
GBP Awaits Bank of England’s Policy Report
What will happen? The Bank of England will present a monetary policy statement on Thursday, August 4 at 14:00 MT (GMT+3)…
Bank of America: GBP Will Rise in 2021
The British pound has advanced in the first half of the year, especially against the euro. Will this trend sustain in the second part of 2021?
Latest news
The Battle for Oil. OPEC Strikes Back
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold is Rising Despite Inflation Returns
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Can the Chinese Economy Recover?
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.
