While the world is torn between possible “safe haven” assets and puzzled what happens next, the British Pound is getting more expensive.
Needless to say that today’s strengthening of the Pound is “a contrario” movement: the USD is retreating on all fronts after Donald Trump won the presidential elections in the USA; other currencies are trading as suited the situation. The current quote for the instrument is 1.2403; today’s high was 1.2546.
Today’s statistics regarding the United Kingdom Balance of Trade in September showed that the indicator decreased, but right now it’s hardly interesting for anybody. Yesterday’s reports were much more intriguing. The Industrial Production in September lost 0.4% m/m against the predicted increase of 0.1% m/m. On a year-on-year basis, in September the indicator added only 0.3%, although it was predicted to increase by 0/8%. The components of the report show that the manufacturing rose by 0.6% m/m (+0.2% y/y) against the predicted number of 0.4% m/m (-0.1% y/y). Slight improvement in the manufacturing sector prevented the Pound from weakening significantly in response to these reports.
The British Prime Minister, Theresa May, emphasized yesterday that the foundation of the country’s economy remained strong. She doesn’t exclude a possibility that the Brexit may increase dependence of state finances on external investments, but thinks it’s not a catastrophe. May’s motto is “live within one's means”, and one can hardly scare the British people in this respect.
One way or another, the United Kingdom was and still is a quite attractive country for finances and investments, and as soon as the exit procedure becomes as clear as possible, the corresponding risks for foreign money will reduce.
RoboForex Analytical Department
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