Tuesday, July 19, 2016

IAFT Weekly Economic Review



Last week by the Bank of Canada and the Bank of England were condacted the meetings on monetary policy. Some analysts are expected that both of the Central Banks will lower level of interest rate, but here they were disappointed, because neither of them did not make any changes to monetary policy. If the Bank of Canada's decision in general was not a surprise, although it caused a strengthening of the Canadian dollar, the Bank of England's passivity after the comments of its chief Mark Carney was a surprise.

Whatever it is, the British pound, thanks to this, was able to keep a positive attitude and to test in a pair with the US dollar resistance at 1.3480. However, on the background of the termination of the United Kingdom of membership of the European Union and the possible consequences of this event, expect from the pound stable positive dynamics is not necessary, and its growth continue to be used for sales. Thus his prospects remain negative, and its decline back to the 28th figure is still quite real.

Since Brexit consequences can be negative for the EU, the negative look and the prospects for the single European currency. Undoubtedly, the failed attempt of military coup in Turkey in no way contributes to the strengthening of its positions, as well as the threat of a banking crisis in Italy. In these circumstances, attempts of euro to restore against the dollar is still used to open short positions, and at this point it is difficult to find a good reason for his purchases, IAFT traders we recommend to be cautious. BlogLinks

Best regards, AffiLinks
International Association of Forex Traders



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