On Friday data on Public Sector Net Borrowing in May was 10.5 billion pounds vs. forecast for 12.7 billion pounds and revised downwardly 6.6 billion pounds in April. Public Sector Net Borrowing ex Intervention grew up to 8.8 billion pounds from 6.3 billion pounds. Mass media criticized UK Chancellor of the Exchequer George Osborne for claiming the borrowings would reduce.
The US dollar strengthened amid political problems in Europe, Turkey, and Brazil; the pound dropped 88 points. Disappointing data came from China. Industrial and Commercial Bank of China denied the information about the additional liquidity for 50 billion yuan. New agencies started to criticize China for overrating the statistical data and estimate the China’s growth at 4-5%.
Probably this even has a special meaning and one should follow thoroughly China’s news. Country’s PMI is lower than forecasts, last Thursday Manufacturing PMI in June dropped from 49.2 to 48.3. China’s GDP is published on Sunday, July 7.
Thus, there is no positive news at the moment and we expect the pound will drop with the target 1.5250. Locally, we expect the gap will close with the target 1.5460, here the drop may resume.
The material has been provided by InstaForex Company – www.instaforex.com
On Friday data on Public Sector Net Borrowing in May was 10.5 billion pounds vs. forecast for 12.7 billion pounds and revised downwardly 6.6 billion pounds in April. Public Sector Net Borrowing ex Intervention grew up to 8.8 billion pounds from 6.3 billion pounds. Mass media criticized UK Chancellor of the Exchequer George Osborne for claiming the borrowings would reduce.
The US dollar strengthened amid political problems in Europe, Turkey, and Brazil; the pound dropped 88 points. Disappointing data came from China. Industrial and Commercial Bank of China denied the information about the additional liquidity for 50 billion yuan. New agencies started to criticize China for overrating the statistical data and estimate the China’s growth at 4-5%.
Probably this even has a special meaning and one should follow thoroughly China’s news. Country’s PMI is lower than forecasts, last Thursday Manufacturing PMI in June dropped from 49.2 to 48.3. China’s GDP is published on Sunday, July 7.
Thus, there is no positive news at the moment and we expect the pound will drop with the target 1.5250. Locally, we expect the gap will close with the target 1.5460, here the drop may resume.
The material has been provided by InstaForex Company – www.instaforex.com
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