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
Without authorization, you can view no more than two reviews per day and no more than 10 per month. To continue reading analytical reviews, register or login to your Members Area.