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GBP/USD: waiting for interest rate decisions _11/07/2016

PCM Brokers

Technical analysis and trading recommendations https://fxpcm.com/en/fx/gbpusd-waiting-interest-rate-decisions-11072016

Despite the fact that the pound is trading at the lowest levels in the past more than 30 years,
the market is still a tendency to further sales of pounds. This is due to the situation with the rate in the United Kingdom, and the risk of recession in the country. Publication of decisions on the rate in the UK is expected on Thursday at 11:00 (GMT).

At the beginning of the month the head of the Bank of England Governor Mark Carney said that the summer will require "some" easing of monetary policy in the UK. Speech Carney returned a pair GBP / USD to lows reached in the "Black Friday", when they were published the results of a referendum. In the UK the central bank last week warned in its report that the prospects for the country's financial system stability were "questionable" after the referendum. Also, the central bank managers reported that they found in the stock markets and commercial real estate markets are signs that foreign investors are pulling money out of the UK.

The Bank of England also lowered capital requirements for UK banks, which should contribute to an increase in lending to companies and households. This decision is preceded by the expected reduction in interest rates. Many economists also predict that the Bank of England will resume its asset purchase program, frozen in 2012.

At the same time the Bank of England believes that the UK economy is now stronger than it was in 2008 and 2009. The head of the bank's Governor Mark Carney said that the decline of the pound was necessary to correct the economy following the referendum. The decline of the national currency should eventually boost exports and the country's economy.

Source: https://fxpcm.com/en/fx/gbpusd-waiting-interest-rate-decisions-11072016
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