Too early to judge Brexit fallout?
Today, the pound/dollar pair is in the limelight today as the Bank of England announced a decision on interest rates. Besides, traders are anticipating the Fed’s monetary policy meeting next week. Meanwhile, the market is absorbing the crucial event. The nine rate-setters of the Monetary Policy Committee were unanimous in their decision to keep the key rate at its new record low of 0.25%. They also voted 9-0 to keep the Bank's bond-buying program target at 435 billion pounds. The decisions came in line with analyst expectations. Apart from it, the Bank of England officials presented their outlook for the economy. "The Committee's view on the economic outlook following the EU referendum has not changed," the minutes said. Inflation is likely to approach the target level of 2% in the first half a year of 2017. As for the current situation of the British economy, retail sales were stronger than expected in August. UK retail sales edged down 0.2% last month, surpassing expectations for a 0.4% contraction. Sales expanded 6.2% from August last year, much better than the forecast for 5.4% growth. Core retail sales fell 0.3% in August. Analysts had assumed a decline of 0.6%. However, despite solid growth of retail sales in the United Kingdom, the figures have to be treated with skepticism due to some headwinds that signal a further slowdown in the economy. Nowadays, traders are betting on the US Federal Reserve raising interest rates. Such expectations are bullish for the US dollar and bearish for the pound sterling. The pound/dollar pair fell below 1.3200 and later corrected to 1.3209. Nevertheless, the US dollar is trading under pressure ahead of macroeconomic statistics from the US. Currency strategists foresee a further advance of the US dollar against the British pound in case US retail sales, industrial production, and producer prices turn out better than expected. https://www.instaforex.com
Today, the pound/dollar pair is in the limelight today as the Bank of England announced a decision on interest rates. Besides, traders are anticipating the Fed’s monetary policy meeting next week. Meanwhile, the market is absorbing the crucial event. The nine rate-setters of the Monetary Policy Committee were unanimous in their decision to keep the key rate at its new record low of 0.25%. They also voted 9-0 to keep the Bank's bond-buying program target at 435 billion pounds. The decisions came in line with analyst expectations. Apart from it, the Bank of England officials presented their outlook for the economy. "The Committee's view on the economic outlook following the EU referendum has not changed," the minutes said. Inflation is likely to approach the target level of 2% in the first half a year of 2017. As for the current situation of the British economy, retail sales were stronger than expected in August. UK retail sales edged down 0.2% last month, surpassing expectations for a 0.4% contraction. Sales expanded 6.2% from August last year, much better than the forecast for 5.4% growth. Core retail sales fell 0.3% in August. Analysts had assumed a decline of 0.6%. However, despite solid growth of retail sales in the United Kingdom, the figures have to be treated with skepticism due to some headwinds that signal a further slowdown in the economy. Nowadays, traders are betting on the US Federal Reserve raising interest rates. Such expectations are bullish for the US dollar and bearish for the pound sterling. The pound/dollar pair fell below 1.3200 and later corrected to 1.3209. Nevertheless, the US dollar is trading under pressure ahead of macroeconomic statistics from the US. Currency strategists foresee a further advance of the US dollar against the British pound in case US retail sales, industrial production, and producer prices turn out better than expected. https://www.instaforex.com