THE REASON OF TUMBLING BRITISH POUND LAST DAY
Today’s forex trading hour we will discuss that why the British pound was remain under pressure despite the high expectation of interest hiking news which I had mentioned in my last days forex trading hour.
As my dear forex trader we observed Pound remains under pressure as of late against most major currencies as risk aversion regains its position due to may be the center of tensions was the Middle East crises, but uncertainty about the economic outlook for this region. Indeed. As I discussed other day in my forex trading hour that the inflation in Uk is increasing continuously without interrupting growth. . In January, the annual inflation rate rose to 4.0 percent marked the highest since November 2008, when the decision-makers to join Spencer Dale Andrew Sentance and Martin Weale vote for a rate hike. Despite the increased expectations of interest rates, the pound sterling is under pressure for the resumption of sustainable growth with demand.
The Statements Which Caused British Pound under Pressure
Last day Bank of England policy maker David Miles said “As the UK economy is in difficult situation and recovery is fragile. He added that our first preference is to reduce inflation as we decide increase the interest rates at certain levels and try to normalize the situation; we expect the positive impact with these measurements. “At the same time, Mr. Miles said:” We are in a fragile recovery and it is important not to interrupt the recovery. “Following the comments of David Miles, the pound sterling is under pressure as traders questioned the possibility of a rise in short-term rates.
Last days CBI reported sales played additional part or added the fuel to keep the British pound under pressure. According to the sales CBI report showed that sales figure for the month of February came down at 6 from 37 where as it was expected by the economists of 28. This reading caused another reason for British pound keep down.
My Advice to the GBP/USD forex Traders!
For the future, currency traders focus their attention on the report of the UK GDP forecasts for the fourth quarter. In the end, the economists predicted a contraction of 0.5 percent. Online viewing or worse than the forecasts can give a negative outlook in the region and lead the GBPUSD back to the zone of 1.60.