In anticipation of the data release at 12:30 MSK, British pound is being restored against other currencies.
After a long period of falling the Briton is trying to win back a part of its positions on the expectations for a positive statistics. The expectations of the market participants that the monetary policy in Great Britain will not be tightened in the nearest future, have made the pound to decline since the beginning of the year almost without any special corrections, making only small letups on the chart.
Today, the Briton has the potential to get a support; if the data on inflation show a positive dynamics, the pound can pull back of its lows. The restoring of the Briton’s growth is unlikely, but a stop of falling with a positive statistics is able to set the lateral direction for the Briton on the price charts.
Otherwise, the currency of Foggy Albion can accelerate its decline. The pound is not considered as a currency refuge in the time of investors’ flight from the risks. The referendum on the withdrawal of Great Britain from the European Union also does not give a support to the Briton.
Therefore, the whole attention is paid to the statistics; the results of today’s data will set the tone of movement not for a single day.
Oleksandr Tikhonov, leading analyst of Premium-Signals.com