The GBP/USD pair is trading steadily without changes in sentiments despite positive statistics.
The British Pound is trading a little bit upwards on Tuesday. The current quote for the GBP/USD pair is 1.2468. According to the mid-term, the Pound is moving inside a narrow trading channel between 1.2220 and 1.2650.
Today’s statistics showed that the Net Lending to Individuals continue to improve. Usually, the population lends money when it believes in the economy and is not afraid of potential risks. The BoE Consumer Credit in October expanded by 10.5% y/y. The growth is 1618M and the total number is 4900M. Moreover, the September numbers were revised for the better.
The Mortgage Approvals also improved in October up to 67.52K after 63.59 last month. The Net Lending to Businesses also continued to improve and added 3.5B Pounds after increasing by 1B in September.
However, now everything is so “rosy”. Yesterday, the CIB published an updated report, which drew attention to the fact that over the last three months the industrial sector companies had been less and less optimistic. The comments to the report say that this decline might be caused by the decrease in the profitability index, although it’s not quite clear whether the comments state a fact or make guesses. Anyway, companies that provide business services experience slow growth of the amount of work and expect it to reduce next quarter.
It appears that businesses and consumers are on the different sides of the event called the Brexit. Businesses are afraid of hidden consequences and consumers are enjoying advantages of the low interest rate and, thus, supporting the economy.
RoboForex Analytical Department
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