The markets have been very cautious and very vigilant on all the recent fundamental data that is coming out of Europe and the United States.
The markets have been very cautious and very vigilant on all the recent fundamental data that is coming out of Europe and the United States. At the moment, changes are happing with regards to monetary policies at the main central banks around the world. But the Bank of England has decided not to make any changes to its policies and is keeping everything as it is.
Let us look into detail, along with the experts at the Binary Options Broker Optionova (http://www.optionova.com) on what reasons could the BOE have to leave everything unchanged. It seems like the recent data out of the United Kingdom is showing that the British economy is expanding its growth. This could have supported the decision by the BOE to leave its interest rates at half a percentage point.
The Bank of England also has its own asset purchasing program and according to the minutes from the meeting at the Bank of England, the decision was to keep interest rates unchanged and to continue with the current asset purchasing program at the same pace. By the way, the decision was unanimous by all voting members.
According to the members of the BOE, there is confidence in the British economy, but they also announced that there are worries that the recent rise in the Pound could hurt economic growth by making the British exports more expensive abroad.
Experts believe that the driving forces in the recovery of the economy are consumer expending and a rise in inventories. There is also the need for further savings in order to boost investment. But more consumption is needed in order to keep the growth pace steady. A slowdown in productivity has also raised some flags at the Bank of England who sees that growth for the last quarter of this year will barely reach 1%.
What are the traders saying about the technical levels on the Pound? Well, the Pound versus the Dollar has been trading lately in a wide range between the 1.6250 as support and the 1.6665 as resistance. Currently it is struggling with the 1.6400 level, but this is a normal price action for an instrument when it reaches a psychological round number level.
The EUR/GBP pair has been in a down slopping channel, meaning that the Pound has been gaining strength versus the Euro and it seems like the downtrend will continue after visiting the 0.8350 level and bouncing to the downside from there to the current level of the 0.8315.
The Pound versus the Yen was enjoying a steady long term uptrend until it reached the 174.70 level and it started retracing, mostly caused by strength in the Yen supported by a rise in risk aversion, to the low at the 163.80 level. But from there, the Pound has been regaining its strength and it is now at the 167.50 level.
The information provided in the article and its analysis has been provided by the professionals and experts of the Binary Options Broker Optionova who have worked diligently along with the analysts at Masterforex-V World Academy (http://www.masterforex-v.com). Both companies strive every day to bring to you the latest and most accurate information on the financial markets.