The pound stopped at nine-month highs
19.06.2015
The GBP/USD pair is trading slightly lower on Friday afternoon, but signs of reversal are yet to be seen.
On Friday, the British Pound is restrictedly adjusting in tandem with the US dollar. The current quotation of the instrument is 1.5848. Yesterday the pair touched a maximum of nine months, 1.5929, but failed to gain a foothold there and slightly receded.
Today's statistics showed that public sector borrowing in the UK in May fell to 10.1 billion pounds (without the intervention of the public sector). This means that the indicator fell by 0.5% of GDP. The y/y rate fell to 2.2 billion pounds.
On the one hand, it was possible to lower the indicator by reducing the net borrowing of the government. On the other, the stabilization was contributed by the smooth movement of the currency market. As a result, the net debt of the public sector of the UK except for state banks amounted to 1.5 trillion pounds, or 80.8% of GDP. Yearly the index added 83.2 billion pounds.
The British pound has little response to these statistics but it is important in the context of the monetary policy the Bank of England. Today's decline in the GBP/USD pair is largely due to technical factors.
RoboForex Analytical Department
On Friday, the British Pound is restrictedly adjusting in tandem with the US dollar. The current quotation of the instrument is 1.5848. Yesterday the pair touched a maximum of nine months, 1.5929, but failed to gain a foothold there and slightly receded.
Today's statistics showed that public sector borrowing in the UK in May fell to 10.1 billion pounds (without the intervention of the public sector). This means that the indicator fell by 0.5% of GDP. The y/y rate fell to 2.2 billion pounds.
On the one hand, it was possible to lower the indicator by reducing the net borrowing of the government. On the other, the stabilization was contributed by the smooth movement of the currency market. As a result, the net debt of the public sector of the UK except for state banks amounted to 1.5 trillion pounds, or 80.8% of GDP. Yearly the index added 83.2 billion pounds.
The British pound has little response to these statistics but it is important in the context of the monetary policy the Bank of England. Today's decline in the GBP/USD pair is largely due to technical factors.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.