Pound Stabilized, But For How Long? Overview 25.07.2019

Thursday morning the British pound is trading calmly in pair with the US dollar, the quotation being 1.2477. Great Britain has got a new Prime Minister Boris Johnson. Yesterday we spoke a lot about this person; however, the market prices demonstrate all fears in flesh, so there is nothing else to fear. Anyway, Brexit for Britain is much a deeper issue than a dialog with the EU (or its lack).

The problem is that the financial sector of the country may lose access to the EU countries, while lords are deciding how to realize the people’s will and not to pay too much. The EU can very quickly toughen the requirements for approval of financial norms for other countries, in which case the rough Brexit will have even adverser effect on the British economy than it is viewed now. This perspective gives little hope to the pound.

Today Britain will present the statistics of retail sales balance from the CBI. The indicator is forecast to stabilize at zero after a drop to -42 points a month before. Index value below zero reflects a decrease in sales volume, while restoration of the index signifies return of consumer interest.