The pound is recovering
22.01.2016
On Friday afternoon, the GBP/USD pair is trading with an increase after updating another minimum this week.
The British Pound is recovering positions. The current quote in the GBP/USD pair is 1.4292. A multi-week low in the instrument was reached the day before, and then the pair touched the 1.4080 mark.
Today, the United Kingdom presented data on retail sales in December 2015. The indicator dipped 1.0% m/m against the forecast of a decline of 0.3%. Yearly the index gained only 2.6% against expectations of growth of 4.3%.
Another release showed that public sector net borrowing in December last year decreased by 6.87 billion against expectations of a decline of 10.35 billion.
As you can see, the statistics could hardle be the reason for the rebound of the pound. Apparently, now several factors are in play - from a technical rebound to the rewind of the investors' funds in the medium-term portfolios. At the same time the pound is still in a weak position in tandem with the US dollar. We can talk about the stabilization and trend reversal when the GBP/USD pair is in the range of 1.45-1.46.
Most likely, the December statistics reflect the full range of negative influences. This means that there will be minor publications for December and January, since the external background has not changed for the better. But in February, we can expect some stabilization in the macroeconomic indicators.
RoboForex Analytical Department
The British Pound is recovering positions. The current quote in the GBP/USD pair is 1.4292. A multi-week low in the instrument was reached the day before, and then the pair touched the 1.4080 mark.
Today, the United Kingdom presented data on retail sales in December 2015. The indicator dipped 1.0% m/m against the forecast of a decline of 0.3%. Yearly the index gained only 2.6% against expectations of growth of 4.3%.
Another release showed that public sector net borrowing in December last year decreased by 6.87 billion against expectations of a decline of 10.35 billion.
As you can see, the statistics could hardle be the reason for the rebound of the pound. Apparently, now several factors are in play - from a technical rebound to the rewind of the investors' funds in the medium-term portfolios. At the same time the pound is still in a weak position in tandem with the US dollar. We can talk about the stabilization and trend reversal when the GBP/USD pair is in the range of 1.45-1.46.
Most likely, the December statistics reflect the full range of negative influences. This means that there will be minor publications for December and January, since the external background has not changed for the better. But in February, we can expect some stabilization in the macroeconomic indicators.
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.