The Pound started falling. Overview for 26.01.2017

The GBP/USD is retreating during the Thursday trading session as another growth of the instrument was rather short.

The British Pound is falling against the USD on Thursday afternoon. The current quote for the instrument is 1.2584.

The GDP Growth Rate (preliminary estimation) over the fourth quarter of 2016 in the United Kingdom added 0.6% q/q, although it was predicted to expand by 0.5% q/q. On YoY, the indicator increased by 2.2% against expectations of 2.1%. It means that the rate of the British economy growth has been quite stable over the three previous quarters: in the third quarter of 2016, the country’s GDP added the same exact 0.6% q/q.

It appears that all “fears” appeared after the referendum, which ended with the Brexit decision, didn’t affect the economy. A little bit of them can be found in some of the macroeconomic reports, but it seems to be more of a coincidence than a stable tendency.

However, taken all in all, predictions about the strength of the British economy in 2017 remain at least conservative. It is considered (and confirmed by the speculations) that after the Brexit procedure is launched, the inflation will increase quickly, and surely impact all types of business and the population’s attitude to the Brexit process.

One more report was published today. The BBA Mortgage Approvals in the UK in December was 43.23K after being 41.00K in the previous month and against expectations of 41.1K. The current reading is the strongest over nine months.

Nevertheless, the stable statistics right now isn’t providing any constant support to the Pound: investors don’t believe in the growth of the GBP/USD pair and lock in their profit once the instrument reaches another high.

RoboForex Analytical Department