The Pound is ready to attack. Overview for 20.09.2017

20.09.2017

The GBP/USD pair went up on Wednesday and is ready to continue growing; the strong statistics allows the market to buy.

On Wednesday afternoon, the British Pound is getting more expensive against the USD. the current quote for the instrument is 1.3544.

The statistics published today supported the “bullish” impulse in the GBP/USD that appeared earlier. The Retail Sales expanded by 1.0% m/m in August after adding 0.6% m/m in the previous month and against the expected reading of 0.2% m/m. This number is the highest over the last four months. The Retail Sales excluding Fuel expanded as well, by 1.0% m/m.

 On YoY, the Retail Sales increased by 2.4% in August against 1.4% the month before. The indicator has been growing for the 52nd consecutive month.

The Recruitment & Employment Confederation (REC) announced on Wednesday that the Employer Confidence in the UK economy has dropped to the lowest level since the EU referendum. In September, the indicator was -7 points after being -3 points in August. Mostly, this is due to worse estimations of the British economy and decrease in confidence. At the same time, companies are ready to hire, as before. This component of the report is positive.

It looks like companies and other businesses are monitoring the Brexit negotiations, because they need to be sure in the future outlook in order to expand operations. So far, none of the Brexit documents have been approved and that makes business people nervous.

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.