The pound fell to March 2017 levels
The pound fell to March 2017 levels
Written by: PaxForex analytics dept - Monday, 29 July 2019 0 comments
On Monday, the pound sterling fell to another low, reaching its lowest level since March 2017. Investors are increasingly concerned that Britain is moving toward a chaotic exit from the European Union without any deal with the bloc.
On Sunday, high-ranking officials said that the government of new Prime Minister Boris Johnson is working on a scenario if the EU does not revise its Brexit deal, and is stepping up preparations for leaving the bloc without a deal on October 31.
In early Monday trading, the pound fell by 0.2% to 1.2363 dollars. The British currency also declined against the euro, reaching 90.01 pence.
Recall that the rate of the British currency dropped by 0.6% to 1.2377 immediately after European Commission President Jean-Claude Juncker told the new British Prime Minister Boris Johnson that the agreement on the terms of the kingdom, reached by the EU with Teresa May, is the only possible and the best.
At the same time, the rate of the US dollar fell slightly to the leading world currencies in anticipation of the meeting of the US Federal Reserve System (FRS), which will be held later this week.
As of Monday morning, the EURUSD rate rose to 1.1128 USD per euro from the previous close of 1.1125 dollars per EUR. The dollar fell against the Japanese yen to 108.59 JPY per dollar from Friday's close of 108.66 yen. The dollar index fell by 0.01% - to 98 points.
Investors are awaiting a meeting of the American regulator, which will be held July 30-31. According to forecasts, 78.1% of analysts expect a reduction in the base rate by 25 basis points from the current level of 2.25-2.5%, while other experts believe that the decline will be 50 basis points.
Against this background, market participants drew attention to the American fundamental statistics, according to which US GDP growth in the second quarter of this year was about 2.1% in annual terms. Analysts predicted a slowdown in GDP growth to 1.8% from 3.1% in the last quarter.
Since the GDP figures were slightly better than predicted, this had a negative impact on expectations regarding the easing of US financial policy.
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Forex trading recommendations:
EURJPY: Buy. Entry point – 120, 8. Take profit – 121, 01. Stop Loss – 120, 43.
AUDUSD: Buy. Entry point – 0, 6904. Take Profit – 0, 6919. Stop Loss – 0, 6878.
NZDUSD: Sell. Entry point – 0, 6632. Take Profit – 0, 6616. Stop Loss – 0, 6659.
On Sunday, high-ranking officials said that the government of new Prime Minister Boris Johnson is working on a scenario if the EU does not revise its Brexit deal, and is stepping up preparations for leaving the bloc without a deal on October 31.
In early Monday trading, the pound fell by 0.2% to 1.2363 dollars. The British currency also declined against the euro, reaching 90.01 pence.
Recall that the rate of the British currency dropped by 0.6% to 1.2377 immediately after European Commission President Jean-Claude Juncker told the new British Prime Minister Boris Johnson that the agreement on the terms of the kingdom, reached by the EU with Teresa May, is the only possible and the best.
At the same time, the rate of the US dollar fell slightly to the leading world currencies in anticipation of the meeting of the US Federal Reserve System (FRS), which will be held later this week.
As of Monday morning, the EURUSD rate rose to 1.1128 USD per euro from the previous close of 1.1125 dollars per EUR. The dollar fell against the Japanese yen to 108.59 JPY per dollar from Friday's close of 108.66 yen. The dollar index fell by 0.01% - to 98 points.
Investors are awaiting a meeting of the American regulator, which will be held July 30-31. According to forecasts, 78.1% of analysts expect a reduction in the base rate by 25 basis points from the current level of 2.25-2.5%, while other experts believe that the decline will be 50 basis points.
Against this background, market participants drew attention to the American fundamental statistics, according to which US GDP growth in the second quarter of this year was about 2.1% in annual terms. Analysts predicted a slowdown in GDP growth to 1.8% from 3.1% in the last quarter.
Since the GDP figures were slightly better than predicted, this had a negative impact on expectations regarding the easing of US financial policy.
Open Forex account >
Forex trading recommendations:
EURJPY: Buy. Entry point – 120, 8. Take profit – 121, 01. Stop Loss – 120, 43.
AUDUSD: Buy. Entry point – 0, 6904. Take Profit – 0, 6919. Stop Loss – 0, 6878.
NZDUSD: Sell. Entry point – 0, 6632. Take Profit – 0, 6616. Stop Loss – 0, 6659.