The Pound is setting itself up for the better. Overview for 02.05.2017

The GBP/USD pair was successful in April and is not afraid of May.

In April 2017, the British Pound added 3.18% against the USD, going from 1.2546 to 1.2949. The Brexit doesn’t seem to scare investors anymore.

Investors were pretty positive about having parliamentary elections this June instead of 2020. If the current Prime Minister of the United Kingdom, Theresa May, wins, those politicians, who are in favor of exiting the European Union, will keep the upper hand.

In April. The Pound reached its’ seven months’ highs. For example, last autumn it was rather difficult to suppose that the British currency would recover so quickly: before that, no European country ever tried to exit the global alliance in the modern history and no one had any idea or assumptions how this story might end. However, this doesn’t seem to worry either the country’s population or the market, at least right now.

According to the Federation of British Industries, the internal orders amount improved by 20% over the first three months of 2017 and reached the highest level since summer of 2014. The amount of export orders added 22%, and the total amount of orders expanded by 25%. For this time of the year, these numbers are extremely strong.

Needless to say that not everything is so bright and cheerful. For instance, the UK consumer confidence fell by 1 point (-7 points at the moment) in the first quarter of 2017, according to the latest Consumer Tracker report from Deloitte. In the fourth quarter of 2016, it was -6 points.

“Mood swings” in the economy are quite normal when it comes to the recovery process during the structural reform. It has little influence of the Pound behavior.

RoboForex Analytical Department