The GBP/USD pair has suspended its rise after three days of steady strengthening in the trade balance data of Great Britain.
This week the British Pound still walked away from the local minima and won back part of the previous losses. On Friday afternoon the GBP/USD pair is trading around the 1.5332 mark (-0.2%).
Today data came out on the trade deficit for the United Kingdom in August. The indicator declined in comparison with the July report and demonstrated the level of 11.1 billion pounds. The components of the report show that exports in August rose to 23.6 billion pounds (0.8 billion), imports dipped by 0.3 billion pounds and came to 34.7 billion pounds. The increased export positions aligned the balance.
Yesterday the Bank of England left its monetary policy in its previous form. The interest rate remained at 0.50% per annum, as before. The asset repurchase program is held at the value of 375 billion pounds, although in fairness it should be noted that it was exhausted even two years ago.
In commenting on the results of the October meeting the British regulator said that the main share of the Monetary Committee voted to keep rates at current levels. In addition, the BoE did not rule out a slowdown of the economy in the third quarter. I recall that during the second quarter the UK GDP added 0.7%, and expectations for the third quarter suggest growth of 0.6%. The pound first lost all its daily gain, but quickly recovered back.
Now that it is clear that the Bank of England will stick to a cautious and conservative monetary policy, the market's attention will go back to the US dollar. Further progress in the GBP/USD pair will depend on its dynamic. For now the pound looks stable.
RoboForex Analytical Department
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