Site map
العربية Български 中文 Čeština English Français Deutsch हिन्दी Bahasa Indonesia Italiano Bahasa Malay اردو Polski Português Română Русский Srpski Slovenský Español ไทย Nederlands Українська Vietnamese বাংলা Ўзбекча O'zbekcha Қазақша

InstaForex Client Area

  • Personal settings
  • Access to all InstaForex services
  • Detailed statistics and reports on trades
  • Full range of financial transactions
  • System of managing several accounts
  • Maximum data protection

InstaForex Partner Area

  • Full information on clients and commissions
  • Graphic statistics on accounts and clicks
  • Webmaster instruments
  • Ready-made web solutions and wide range of banners
  • High data protection level
  • Company's news, RSS feeds, and forex informers
Register account
Affiliate Program
cabinet icon

Another Lamborghini from InstaForex!Maybe it will be you who will take the keys!

Just make a deposit of at least $1,000 to your account!

Get the best trading conditions and attractive bonus offers! We have already given 6 legendary sports cars! But it does not stop there! The next Lamborghini Huracan of the latest generation may be yours!

InstaForex – invest in your victories!

Instant account opening

Get a letter of instructions
toolbar icon

Trading Platform

For mobile devices

For trading via browser

Long-term review

The UK economic data has provided the sterling with support this week as most major reports beat consensus forecasts.

Underlying average earnings strengthened to an 11-year high of 3.9% from 3.6% previously. The headline CPI inflation rate increased to 2.1% from 2.0% while retail sales also posted a monthly gain for July, stronger than expectations of a small decline.

The domestic data suggests that the Bank of England will need to be very cautious in easing monetary policy. The inflation and wages data would back the case for a small increase in interest rates.

Industrial sentiment remains depressed, but the Bank of England will hardly be able to sort it out through interest rates, especially with the sterling already very weak.

There is a strong likelihood that the Federal Reserve will cut interest rates again at the September meeting and that the ECB will announce an aggressive easing package next month. Given global monetary easing, net UK yields have, therefore improved.

Political factors will inevitably set the tone for the sterling given the underlying Brexit uncertainty. The government under Prime Minister Johnson remains committed to leaving the EU on October 31st even if no deal with the EU can be reached.

A majority of the House of Commons members remain committed to avoiding any no-deal outcome with the scene set for an intense political battle from early September when parliament returns from recess.

The G7 Summit on August 24-26th will provide clues to Brexit prospects as Boris Johnson is likely to meet key EU officials including German Chancellor Merkel. Overall political risk premiums will remain very high, although derivative markets indicate that underlying selling pressure on the sterling has eased slightly.

Exchange Rates 16.08.2019 analysis

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Tim Clayton,
Analytical expert
InstaForex Group © 2007-2019
Benefit from analysts’ recommendations right now
Top up trading account
Get a bonus from InstaForex

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.