Published last week macroeconomic statistics for the UK generally was not the best, but it did not have a particular influence on the dynamics of the British pound, which tried to keep from falling below the 44th figure in a pair with the US dollar. Attention of market participants focused on the results of the meeting of the Bank of England, from which most of analysts do not expect anything new, but the weak economic performance of the country and prospects for its exit from the European Union allowed us to assume a weakening of monetary policy.
However, as expected, the ECB left the interest rate and the volume of the asset purchase program unchanged. At first, the market responded positively to to the news , against which the pound/dollar tested resistance at 1.4530, but after testing this level, the pound was down again, ending the week near the support of 1.4340. Thus the prospects for the British pound remain negative, the pressure on him before the referendum can persist. Ease the pressure will able the results of surveys in the UK, if the number of opponents on exit from the EU will exceed the number of supporters.
For the EU to exit of Great Britain is also does not bode anything good, and this is one of the reasons for activation of the bears on the euro last week. His attempt to recover against the dollar was limited by the resistance in the area of 1.1446, from which, being under pressure, it is by the end of the week fell to the support of 1.1283. Further development of the upward correction now looks unlikely, pair may soon test a 12th figure, in this case the loss of the euro on the background of positive account surplus in the Eurozone can be limited, that should be taken into account by IAFT traders. BlogLinks
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