The Pound is getting more expensive. Overview for 20.02.2017

20.02.2017

The GBP/USD pair is trading to the upside at the beginning of the week; investors are focusing on the absence of news and sales of the USD.

On Monday, the British Pound is growing against the USD. The current quote for the instrument is 1.2458.

The market is rather calm today. The USA are celebrating the President’s Day, so they have a day-off; the economic calendar is almost empty. In such situation, investors started selling the American currency little by little, and the Pound has the chance to recover after last Friday’s losses.

Moreover, the statistics published today showed that the Rightmove HPI in the United Kingdom in February expanded by 2.0% m/m after adding 0.4% m/m in January. On the one hand, it’s not as much as the indicator used to add in the past, when the House Prices Index increased by 4-6% m/m. But on the other hand, the indicator is still being influenced by the Brexit fears and consequences along with the growth of the CPI in the country.

Sooner or later, it will come to this: those, who want to buy houses, will wait for the right time for purchases, and those, who sell them, will have to keep the prices without any significant revisions. The British real estate market showed its ability to handle stress more than once and it would be rather hotheadedly to expect that the prices might plummet just because of some ill-defined and long procedure of the country’s exiting the European Union.  

A bit later, the CBI Industrial Order Expectations report was published. It showed that the indicator increased up to 8 points after being 5 points in January (expectations were the same). Overall, the published statistics was in favor of the Pound and may support it until the tomorrow’s trading session.

 

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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.