Yesterday’s statistics on the pound had to support the national currency, having stopped the fall of the Briton at least for a little. And in fact the indexes have shown the positive dynamics, but the Briton was restored only on the expectations yesterday.
After the block of information on the UK has been released, the head of the Bank of England made a speech at 14:00. Mark Carney has declared in his speech, that more intense restoring of inflation rate is expected, and the present levels of growth are still far from the required values for the tightening of the monetary policy. It also has been said that in the current situation in the world economy it is necessary to be very careful in making any decisions, and even if the Bank of England decides to begin to raise the interest rates, this raising will be gradual.
The market has regarded this declaration as a rejection of British regulator of the tightening of the monetary policy in the nearest future; and it has directed the currency of Foggy Albion to new lows. The fall of the Briton after the statements of the head of the Central bank has only strengthened, having lowered the Briton in a pair of GBP/USD below the lows of 2010. Now the price is being traded almost at the lows of 2001. At that time the price has been traded near the level of 1.4100 for more than a year and has turned, and as well has not overcome a strong support. Now, if the Bank of England leaves its policy unchanged, and the US Fed continues the tightening on the contrary, we can see the new historical lows on the GBP/USD chart even this year.
Oleksandr Tikhonov, leading analyst of Premium-Signals.com