The Pound is staying close to its two weeks’ highs. Overview for 28.06.2017

28.06.2017

The GBP/USD pair continues rising, but in order to reach a new high it requires a stronger driver.

On Wednesday afternoon, the British Pound continues strengthening against the USD. The current quote for the instrument is 1,2821. The high is at 1.2858.  

The Nationwide HPI increased by 1.1% m/m in June, although it was expected to add just 0.1% m/m. In the previous month, the indicator lost 0.1% m/m. In March and April, it was also falling. On YoY, the indicator added 3.1%.

The report from Nationwide shows that the real estate market is getting back to life again and that’s a good signal for the British economy. If the reason for the real estate prices growth is a “healthy” demand from the population, one may talk of a new positive tendency. It’s very important for the market that the per square meter price grow and keep the rate of growth. In this case, the Brexit won’t influence the sector much.

The report is positive for the Pound. However, the most substantive support comes from the inside: major currencies are getting stronger while the USD is weakening. “Bear raid” in the EUR/USD pair caused the same in other currency pairs. The Pound will remain strong as long as the market players are trading against the USD.

 

RoboForex Analytical Department

 

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.