The Pound is rising. Overview for 27.06.2017

The GBP/USD pair is in favor on Tuesday following the statistics from the Bank of England.

On Tuesday afternoon, the British Pound is growing against the USD. The current quote for the instrument is 1.2762.  

The demand for the Pound is based on the good reading of the CBI Realized Sales. In June, the indicator was 12 points after being just 2 points the month before ands against expectations of 4 points.

The BoE Financial Stability Report, which was published today, says that the regulator decided to increase the countercyclical buffer up to 0.5%. Later, it is expected to be increased up to 1%. This is intended to help banks that participate in the country’s financial system to adapt to new financial conditions. At the same time, it should make the banking system stronger without any unnecessary fiscal actions.

Despite today’s growth, the Pound is still moving inside the mid-term trading range against the USD. To remain strong, the instrument has to fix above 1.28, but during the first week of the Brexit negotiations it’s very unlikely.

RoboForex Analytical Department