The Pound took a jump. Overview for 21.06.2017

The GBP/USD pair is growing on Wednesday afternoon pretty quickly after the BoE’s representative’s comments about possible closing of the QE program.

The market responds to words, but still believes in miracle. The British Pound is significantly growing against the USD in the middle of the week after one of the representatives of the Bank of England told the media that it would make sense to close the QE program or some of its aspects in the second half of 2017. The current quote for the GBP/USD pair is 1.2694.

Mr. Andy Haldane, the representative of the Bank of England, emphasized today that in his opinion it would make sense to cancel some aspects of the QE program in the second half of 2017. According to his words, the increase of rates might add an element of uncertainty to the economic situation and cast a shadow over consumer and business confidence. That’s why, it might be the time to curb stimulus measures slowly, one by one.

During the past meetings of the Bank of England, Haldane himself was usually rather neutral or even moderate in his views. Probably, it was the fact that he changed the ground that surprised the market.

When speaking to the Parliament that returned after the elections this afternoon, Queen Elizabeth the Second emphasized that the top priority should be assigned to the Brexit and the Government had to do its best in order to bring the negotiations to a successful conclusion.

Most likely, the Pound will remain very sensitive to market fluctuations until the end of today’s trading session.

RoboForex Analytical Department