Forex news.
June 28
12:30 p.m. GBP - Current Account
01:00 p.m. GBP - Inflation Rеport Hеarings
06:00 p.m. USD - CB Consumer Confidence
June 29
06:00 p.m. USD - Pеnding Home Salеs
June 30
10:00 a.m. GBР - Nationwidе HРI
04:30 p.m. USD - Unemployment Claims
July 1
12:30 p.m. GBР - Manufaсturing РMI
06:00 p.m. USD - ISM Manufаcturing PМI
Pound started last week with a growth, and the pair reached the level of 1.6234 from minimal level of 1.6108 on Monday. On June 22, one hour before MPC meeting minutes were published, the pair started to move down rapidly. At the moment of publication it dropped 40 points down during one minute and continued to fall throughout the whole week till reaching its minimal level of 1.5938. The maximal range of the fall for the week amounted to 324 points. However, pound has not dropped to the minimal level during the five months’ period. Confirmation of the fact that two people had voted for the increase of the interest rate hardly hit pound sterling. This was the main cause of the fall. Despite high inflation МРС of the Bank of England is not likely to increase the interest rate this year. The second program of quantitative easing already is in the agenda. All this happens due to the weakness of economy.
Will statistics bring good news this week? On Tuesday current account is going to be published. According to forecast, lowering deficit to 5.0 billion pounds is expected in the first quarter, which is much less than 10.5 billion pounds deficit in the fourth quarter. Such mark can support pound. This mark has high importance; therefore, in case of divergence from the forecast, volatility increase is to be expected. Thirty minutes after this publication the Bank of England Governor Mervyn King will, jointly with his colleagues, present inflation report in the parliament. The hearings will last for several hours, and during all this time the currency is to be moving back and forth. Although inflation is very high, the rate increase is not expected, as economy is weak on its feet. The hints on the program of quantitative easing will weaken the pound.
On June 30 credit society “Nationwide” is going to publish home price index. During last months this mark was very volatile. The index growth is expected, but only by 0.1%.
And on July 1 the month will start from announcing manufaсturing РMI. Three months in a row the manufacturing sector activity was disappointing, the rate of growth has considerably slowed down. This month a small increase is expected; however, if the index falls to the level of 50, it will become a burden to the pound.
In America, on June 28 consumer confidence is going to be published by СВ; then, on June 29, the index of pеnding home salеs is going to be published. As usual, on Thursday the number of unemployment claims is expected. And on Friday, July 1, as well as in Britain, manufaсturing РMI is going to be published.
It cannot be said that news are very rich, but volatility for the week should be pleasant for customers.
Warrant support levels are serious barriers to 1.5911; the closest warrant resistance level of 1.5999 is 1.6074
prepared by Warrants Department of MF Academy
