STERLING POUND (GBPUSD) - Strategy : 12.08.2016
The sterling pound fell by 0.42 percent. Investors are speculating that recent disappointing stimulus package introduced by BoE could prompt a greater fiscal policy response to Brexit-based
uncertainty. This has led to increased volatility in the Sterling Pound.
Lack of important economic data releases from the nation prompted the traders to focus on the outcome of BoE monetary policy review where the policymakers announced a surprise
package which comprised of a rate cut of 25 basis points to 0.25 percent. Many other measures were also introduced to stimulate the Britain economy in the wake of the Brexit vote. BoE inflation
report shows biggest downgrade to growth outlook.
OUTLOOK
Sterling Pound is expected to trade sideways owing to DX strength. Moreover, markets are speculating a greater fiscal policy response by BoE to Brexit-based uncertainty.
* Manufacturing PMI declined to 48.2 in July’16 from previous months 49.1.
* CPI came on a good note at 0.5 percent in June’16 from 0.3 percent in May’16
* Retails sales declined by 0.9 percent in June ’16 from previous months 0.9 percent.
uncertainty. This has led to increased volatility in the Sterling Pound.
Lack of important economic data releases from the nation prompted the traders to focus on the outcome of BoE monetary policy review where the policymakers announced a surprise
package which comprised of a rate cut of 25 basis points to 0.25 percent. Many other measures were also introduced to stimulate the Britain economy in the wake of the Brexit vote. BoE inflation
report shows biggest downgrade to growth outlook.
OUTLOOK
Sterling Pound is expected to trade sideways owing to DX strength. Moreover, markets are speculating a greater fiscal policy response by BoE to Brexit-based uncertainty.
* Manufacturing PMI declined to 48.2 in July’16 from previous months 49.1.
* CPI came on a good note at 0.5 percent in June’16 from 0.3 percent in May’16
* Retails sales declined by 0.9 percent in June ’16 from previous months 0.9 percent.