19.08.201510:28 Forex Analysis & Reviews: Global macro overview for 19/08/2015

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Global macro overview for 19/08/2015:

The sterling rallied yesterday after inflation data beat expectations. Moreover, the market now might anticipate a more probable BoE interest rate hike in the coming months. The core inflation peaked at a five-moth high, while the consumer inflation rose 0,1% instead of staying flat at 0%. In his latest economic outlook, BoE governor Mark Carney stated that the inflation will remain low or flat until the end of the year as the British pound speculations could persist a little longer. Nevertheless, leaving the rates at a low level in order to wait for the BoE 2% inflation target would not be healthy for the UK economic recovery in the long term, so the BoE might wait for the US Fed to raise the rates first and then follow up.

The technical picture of GBP/USD is getting more clear now as the demand break-through zone has been finally violated. If the bullish sentiment persists, this pair should soon test the next resistance at the level of 1.5790.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.