As you probably know, London is getting ready for the Brexit after the people of Great Britain chose to quit the European Union during the Brexit referendum held on June 23rd 2016.
During the recent G20 summit in Beijing, the British Minister of Finance said the UK is ready for tax changes and budget spending changes in the near future. According to him, the budget will depend on the future economic figures seen over the next 3 months.
At the same time, the IMF made a share decrease in estimating the UK’s financial future. To be more specific, the UK GDP 2017 forecast was decreased all the way down to 1.3%, which is almost 1% down as compared to Aprils forecast.
Still, the IMF acknowledges that the Bank of England was successful in stopping the panic seen in financial markets following the Brexit referendum results. Still, the IMF assumes that the Bank of England cannot play the role of a buffer forever. With that being said, the IMF introduced 3 possible scenarios depending on how the Brexit develops.
According to Christine Lagarde, Managing Director of the International Monetary Fund, the IMF urges the UK authorities to get rid of the uncertainty related to the Brexit conditions as soon as possible in terms of the UK’s external trading relations with its partners.
In the meantime, the other day the UK released the first PMI figures after the Brexit referendum. To be more specific, the British PMI declined from 52,4 all the way down to 47,7 points in July 2016, which is the biggest monthly drop seen over the last 20 years.
FOREX
According to the SRP Department (AO_Zotik and WPR_VSmark) of Masterforex-V Academy, you can see GBPUSD forming wave A up and wave B down if to look at H1 and H4 charts of the currency pair. Most likely, wave B is going to be followed by wave C inside the ABC retracement pattern of a bigger scale, the experts say.
