Market Leader reports that investors start withdrawing their investments form the British economy. The breaking news was published by CNBC.com with reference to CrossBorder Capital. Indeed, the experts from Masterforex-V Academy confirm that the UK is currently suffering from a record-breaking flight of capital. I particular, over the last 15 months, investors have already withdrawn 356 billion dollars.
The situation seems to have been deteriorating since early 2015. In particular, in March 2015, the monthly outflow reached $24bn. It should be noted that these are the record-high monthly figures for the UK. Such a huge outflow haven’t been seen since 2005.
The experts report that there are 2 key reasons for the flight of capital we are currently seeing. the first reason is the forthcoming parliamentary election in Great Britain. Chances are that the results of the election may well shift the balance of political powers towards the adversaries of a tighter integration with the EU.
The second reason has to do with major Russian businessmen and investors, who used to keep their money in British banks and invest in British businesses. Now, they are afraid that sooner or later, they will become victims of the never-ending sanctions against Russia and therefore keep on withdrawing their funds to move them to a safer place. Most of them start investing in emerging economies.
There is an extra reason why the flight of capital is underway. Most local investors are also getting rid of their governmental bonds for the bonds emitted by emerging economies with higher yields.
As for the current situation in the Forex market, Masterforex-V Academy reports that GBPUSD keeps on consolidating against the long-term downtrend, which has reached 1.5449. The closest levels to pay attention to are:
Support - 1,5090 + MF sloping channel
Resistance - 1,5549
For now, these are the key levels to watch if you want to determine the direction of the next big move.
