The GBP/USD pair “put on some weight” during Thursday’s trading session and may add some more on Friday supported by the news about possible complications with the Brexit.
Well, the UK’s trash is the Pound’s treasure. On Thursday, Her Majesty's High Court of Justice in England issued an order that the government of the United Kingdom didn’t have a sole right to start the procedure of the country’s exit from the European Union. The British Pound responded to this news by skyrocketing to 1.2595. Later, when the market calmed down, the Pound retreated, and the country’s authorities declared that they were going to take an opportunity to submit an appeal. Otherwise, the Brexit procedure has to be confirmed by the voting in the parliament – and here there might be a lot of surprises and pitfalls.
During its November meeting, the Bank of England left the basic aspects of the monetary policy intact. The interest rate is 0.25%, asset buyout program is estimated at 435 billion Pounds. The vast majority of these funds was spent several years ago.
In his comment, Mark Carney, the Governor of the BoE, emphasized that the QE program operated and had an effect, while the inflation expectations improved. The regulator’s attitude towards monetary policy remains neutral, its opinion about the details of the Brexit procedure didn’t change. The Bank of England said once more that it had additional tools for stimulating and was ready to use them if necessary.
The Pound may yet move by inertia for some time, but soon this growth will be over, because the USA are going to publish a lot of important information.
RoboForex Analytical Department
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