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Improvement of sentiment at pound. The new prime minister, new moods

Improvement of sentiment at pound. The new prime minister, new moods

created Natalia BojkoJuly 25 2019

The Wednesday session was very intense and interesting on the market. The large number of publications of macroeconomic data contributed to this. Investors' attention was primarily drawn to PMI readings for industry and services from the euro zone and from the United States. We are slowly observing a shortness of breath in the economy. In the EU, the internal market of the community is primarily important. Its good condition positively affects GDP practically in the entire zone. We are waiting for the data that will appear shortly after the ECB meeting and next FOMC's next week's decision. Nevertheless, it is worth taking a look at the quick review of the currency market after such a good day for the pound.

At most for a month

Probably most of us remember the recent black series on pound. The course dived a few days in a row and there were no positive signals to change the situation. Several smaller reflections along the way were quickly absorbed by the supply. Wednesday's session may be a turning point for the pound rate. Despite the fact that investors on GBP they still do not have a very positive attitude, we can observe its reflection in the coming days. Oscillators indicate significant levels of sales.


GBP / PLN chart, H4 interval. Source: xNUMX XTB xStation

Wednesday's pound performance, can be counted as very successful. The rate is the highest in a month and sheds a bit of optimistic light on the GBP situation. Upward movement is attributed largely to the election of the new prime minister in Great Britain.

Boris Johnson strengthens the pound

The election of the new prime minister shed a different light on the approach as well Brexitu. Johnson has not been as gentle in negotiations as his predecessor. It does not exclude the possibility of a non-contractual withdrawal from the EU. There is no doubt, however, that Johnson's election positively affected the British currency, especially in relation to the euro. The market is now awaiting exposed new prime minister along with comments on Brexit. The upcoming meeting will have a big impact on GBP Bank of England (exactly 1 August). Accurate decisions and provisions regarding interest rate cuts are to be made on it.

New authorities in the EU

Many analysts are considering positive scenarios regarding possible Brexit. Authorities have changed not only in Great Britain. A new committee is elected in the EU. There is therefore a number of uncertainties about whether the newly created body will find a thread of agreement with Johnson? Doubts, however, are not subject to the fact that it will be a new look at the divorce of the United Kingdom with the Union that has been going on for some time.

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About the Author
Natalia Bojko
Graduate of the Faculty of Economics and Finance, University of Białystok. He has been actively trading on the currency and stock markets since 2016. It assumes that the simplest analyzes bring the best results. Supporter of swing trading. When selecting companies for the portfolio, he is guided by the idea of ​​investing in value. Since 2019, he has held the title of financial analyst. Currently, he is the co-CEO & Founder in the Czech proptrading company SpiceProp. Co-creator of the Podlasie Stock Exchange Academy project (XNUMXrd and XNUMXth edition).