The pair at the auction on Tuesday continues to be quoted near the psychological level of 1.30. Over the past day, the pound against the dollar fell by 50 points, further away from the local maximum of the previous week 1.3068. Last Thursday, the growth of the pound was the largest in two months, after Rishi Sunak replaced his predecessor, Sajid Javid, as the Minister of Finance of England. Personnel changes in the Government of Prime Minister Boris Johnson were positively received by market participants. Recall that Johnson plans to increase spending in a number of areas – infrastructure, police, health education. It is believed that Sunak actively supports the policy of fiscal stimulus, which means that with him the chances of a significant easing of budget rules are much yours than under Javid. Nevertheless, traders are still confident that the potential easing of fiscal policy at any time can outweigh doubts about the ability of England and the EU to agree on a trade deal by the end of 2020, as well as the deterioration of the British macroeconomic environment, which increases the likelihood of a rate cut by the Bank of England at the April meeting . An hour ago, data on the state of the English labor market were presented to traders. Despite the fact that unemployment remained unchanged, wage growth slowed. The average weekly wage excluding bonuses for this period increased by 3.2% after an increase of 3.4% in the previous three months. If the inflation report shows similar weakness tomorrow, pressure on the pound will increase. With this in mind, we recommend holding short positions on the GBPUSD pair.
GBPUSD SellLimit 1.3050 TP 1.28 SL 1.3110
Artem Deev, Head of Analytical Department, AMarkets
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