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Pound: Expect a Fall to 1.15332

In the European trades on Tuesday the pound/dollar rate grew from the 1.5390 level to hit 1.5420 following the release of British data. The index for business activity in the UK manufacturing sector throughout February was 54.1 (forecasted: 53.5, previous: 53.1).

When data on Eurozone inflation and unemployment values came out, the euro/pound rate grew sharply, sending the pound dollar to 1.5351. Even the release of US statistics couldn’t facilitate a roll-back for the pair. Currently the pound/dollar is trading around 1.5377. Looking at the forecast I’m awaiting a slide to the LB line from the last drop of up to 90 degrees (1.5332).

In the UK at 11:30 EET the index on business activity in the construction sector will come out and at 12:00 EET the governor of the Bank of England’s Mark Carney is due to make a speech. Yesterday the PMI index came out. If the index on business activity in the construction sector will be higher than expected, the pound could quietly return to 1.5413. No-one knows what Mark Carney plans to announce. I don’t think he’ll show his hand before the Bank of England convenes. 

Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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