Will the Fed Chair changes his views during the speech today?
Pound has good potential in 2018
The Pound has started to strengthen its position on a trade market because of Brexit talks. To the end of 2017, the situation with the UK and its withdrawal from the European Union has started to become more clear that affected an economic situation and currency rates.
Economists do not give an absolutely optimistic forecast about the results of Brexit negotiations, however, changing in negotiations and new steps give more chances to currency to recover. Most of analysts and economists suppose that the Sterling will stay steady and it will not be the same fall of the British currency like it happened in 2016.
Looking at the graph it is noticeable that the Pound is slowly rising from the end of November 2017 after the great fall on the 19th June 2016.
However, not only political issues affect currency rates. There are other important events that will have an impact on the dynamics of the Pound. For example, Manufacturing Production data that shows changes in the total inflation-adjusted value of output produced by manufacturers. The actual data will be released on 10th January 2018 representing data from November 2017. According to the forecast, the percentage should grow from 0.1% to 0.3% that will affect the currency in a good way. The difference is not too high but it shows that the currency is stable.
Making a conclusion it is too early to talk about the fast rise of the Pound sterling. Although most of the economists and analysts say that it is more likely that the Sterling will stay steady without huge falls in 2018 not only against Dollar but even against Euro and the major role the Brexit negotiations will play.
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Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.