Warren Buffett“A public opinion poll is no substitute for thought.”
Adlin Sinclair“Success is a welcomed gift for the uninhibited mind.”
Pound to Trade Below $1.60 on Weak Resilience, Fed Rate Hikes
TheU.K. economy is being one oftheslowest torecover from theglobal slump that started inthesecond semester last year, andaseconomies recover globally faster than intheBritish Isles, thepound may decline further versus theeuro andthedollar.
After posting thefourth consecutive weekly decline versus thegreenback, theoutlook fortheBritish currency remains rather unattractive, asforecasts suggest ahigher than previously expected budget deficit forthefollowing years intheU.K., forcing thecurrency down versus most ofthe6 majors traded in
markets. The Federal Reserve is likely toincrease borrowing costs intheworld’s wealthiest nation asseveral reports coming from different sectors oftheeconomy indicate arebound that would make possible earlier than expected increases ininterest rates, affecting positively thedollar incurrency markets, which is likely toclimb further versus thepound.
Even if the Moody’s Investors Service affirmed last week that it will not downgrade theU.K.’s top credit rating, investors are not confident that theBritish economy will provide better data which could stop alosing streak set forthesterling fortheupcoming weeks.
GBP/USD closed theweek at1.6251 from anopening rate of1.6484 inthebeginning oftheweek.
If you want tocomment ontheGreat Britain pound’s recent action orhave any questions regarding this currency, please, feel free toreply below.