On Friday GBP/USD pair stopped declining and came back to a narrow trading range. At the end of the week the British Pound got stabilized. Currently it holds at 1.3312.
Today BoE released an interesting data on survey of British population. Thus, the number of people who anticipate a rate increase during a year-period fell to the lowest value. Only 21% people are sure the rate will be increased in the next 12 months comparing to 41% in May 2016. Another portion of 19% are sure that the British Central Bank will decrease the rate in 2017 (last survey showed 5%).
BoE updated its view on the rate decrease in the beginning of August only, after a 7-year of neutral stance. Currently the rate is the historical low record – 0.25% per annum. Speaking about the BoE itself, it has already mentioned it would decrease the rate provided the economy shows signs of recession or falls sharply. As for now, we haven’t seen such signs yet.
Today’s statistics showed that the negative export surplus at the end of July contracted to 4.502 billion pound compared to 5.573 billion in June. Deficit of trade in products shortened to 11.8 billion pound compared to 12.9 in June.
During the coming week participants of the currency markets will be focused on Fed and GBP/USD will be reacting to the investors’ sentiment accordingly. But for now the limits of the 1.3150-1.3400 look strong enough.
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