The pound seems to have set out to prove that the exit of UK from the European Union is absolutely the right choice. If the euro continued to decline over the past week, the pound, on the contrary, grew. Over the past five days, the GBP/USD pair has added almost 200 points, reaching a local high around the 1.3060 mark.Although the currency went down due to the unexpected resignation of British Finance Minister Sajid Javid, it quickly turned around after the new head of the department became the experienced financier, Rishi Sunak. Investors interpreted his appointment as an attempt of Prime Minister Boris Johnson to increase control of the Treasury, as well as a way for the government to increase public spending.Because of this, expectations that the Bank of England will cut the interest rates in the near future have almost disappeared. Now, the futures market will lay down rates by 25 basis points no earlier than December 2021.According to some experts, the pound has good prospects of growth this year, as it will play back unrealized fears about UK’s disordered exit from EU.Moreover, it is assumed that tax cuts and increased budget spending, which Rishi Sunak is an apologist for,…
Japan industrial production rose at a softer pace in December, than in the initial estimate, final data from the Ministry of Economy, Trade and Industry showed on Monday. Industrial production rose a seasonally adjusted 1.2 percent month-on-month in December. In the initial estimate production increased 1.3 percent. On a monthly basis, shipments rose 0.3 percent in December and inventories decreased 0.9 percent. The inventory ratio gained 0.8 percent. On a yearly basis, industrial production declined 3.1 percent in December. According to the initial estimate production decreased 3.0 percent. Further, data showed that capacity utilization fell 0.4 percent on month in December, and dropped 7.4 percent from a year ago. The material has been provided by InstaForex Company – www.instaforex.com…
Good day, dear traders! I present to your attention, a trading idea for GBP / USD.
Last week’s main event from Lonon was the statement of Finance Minister Sajid Javid, who did not share Boris’s views on the trade agreement with the European Union. On this news, the GBP / USD pair rose by more than 1000p.
On top of that, positive GDP news was released for the pound yesterday. Both these factors raised the currency by 1,700p, securing it at 1.3:
Meanwhile, the sellers of the pair can obviously hide their risks (stops) behind the nearest and incredibly clear level of 1.30700, which you can see on the chart above.
In addition, the false breakdown of the US correction has already passed last Friday:
To those who have not bought yet, work from longs inside the day, with profit taking at the breakdown of 1.30700.
If the breakdown doesn’t happen today, it will be tomorrow, on the release of the British unemployment rate:
Good luck in trading and control your risks!
The material has been provided by InstaForex Company – www.instaforex.com…