The Pound is rising a bit. Overview for 26.10.2016
26.10.2016
Yesterday’s panic was replaced by the GBP/USD pair purchases; it seems that investors made haste when started selling.
On Wednesday afternoon, the British Pound is recovering after yesterday evening’s fluctuations. The current quote for the pair is 1.2216.
Investors started selling the Pound after the words said by the Chancellor of the Exchequer that nothing would prevent the Bank of England from expanding the asset buyout program in the future. The market wasn’t ready for this and its obvious response was to fall. Later, the situation returned to normal after the speech of the Governor of the BoE, who said that there were no reasons not to believe in the regulator’s targets.
Due to this, today investors don’t react to the opinion of Mohamed A. El-Erian, ex-CEO of PIMCO, who said that the nearest future wouldn’t be easy for the United Kingdom. He even used the word “critical”, but today market players weren’t afraid of it. According to his opinion, the country’s economy seems fragile, although it is more likely to withstand and preserve stability in the aftermath of the Brexit.
In other words, right now key factors are words and opinions, but not the statistics and fundamental background. It appears that the market, after getting back to normal today, prefers to see the data on the country’s GDP, and only after that – response.
RoboForex Analytical Department
On Wednesday afternoon, the British Pound is recovering after yesterday evening’s fluctuations. The current quote for the pair is 1.2216.
Investors started selling the Pound after the words said by the Chancellor of the Exchequer that nothing would prevent the Bank of England from expanding the asset buyout program in the future. The market wasn’t ready for this and its obvious response was to fall. Later, the situation returned to normal after the speech of the Governor of the BoE, who said that there were no reasons not to believe in the regulator’s targets.
Due to this, today investors don’t react to the opinion of Mohamed A. El-Erian, ex-CEO of PIMCO, who said that the nearest future wouldn’t be easy for the United Kingdom. He even used the word “critical”, but today market players weren’t afraid of it. According to his opinion, the country’s economy seems fragile, although it is more likely to withstand and preserve stability in the aftermath of the Brexit.
In other words, right now key factors are words and opinions, but not the statistics and fundamental background. It appears that the market, after getting back to normal today, prefers to see the data on the country’s GDP, and only after that – response.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.