On Thursday afternoon, the main currency pair is moving to the upside; the market is calmly waiting for the results of the British referendum.
Yesterday, the single European currency strengthened against the US Dollar and today continues growing, but in comparison with the Asian trading session dynamics, the activity in reducing. Capital markets’ attention is focused on the United Kingdom: today, the country is holding the referendum relating to the UK’s membership in the European Union. The voting results will influence the investors’ mid-term attitude to risks, at least, and remake of worldwide trade and economic relations and change of monetary strategies basics, at most. The current quote for the pair is 1.1318.
This morning, Germany presented statistics on the business activity index in June. For the tertiary industry, it was 53.2 points against the predicted number of 55 points; for the manufacturing sector – 54.4 against 52 points. It’s quite strange that the tertiary industry looks so weak as right now it’s the height of the tourist season, which may be considered as a great motivation for the services sector.
Across the board in the Eurozone, the business activity in the services sector is 52.4 points (the predicted number is 54.1 points). The manufacturing sector indicator is 52.6 points against the expected number of 51.3 points. The tendency is glaringly obvious: the heavy industry is recovering slowly but steadily, and the services sector, which is influenced by the seasonal factor, in not on a stable footing.
Normally, the market closely monitors such indicators, but today is a special day, when investors are interested in the popular will of the particular country. Major currency pair will continue moving inside narrow trading ranges until the voting results, preliminary ones at least, are published.
RoboForex Analytical Department
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