- Paul Smith, a manager at Haart
The Pound is losing its ground versus the greenback as Ukraine government refused recognizing Crimea as a part of the Russian Federation. The cable was trading 0.34% lower on Tuesday, approaching important support level at 1.6568.
While the economy is strengthening and the outlook for the Pound is still bullish, the coming radical shake-up in the Bank of England can add more uncertainty surrounding central bank's further moves. As a part of Mark Carnet's broader reform, the nation's Treasury announced that two new deputy governors will step into their positions in the coming months. Ben Broadbent will be the next deputy governor for monetary policy, while Nemat Shafik will be in change of markets and banking. The changes are the first part of the "root-and-branch" review announced by Mark Carney. This is a review of how the Bank of England conducts market intelligence, following a series of scandals surrounding manipulations of foreign exchange rates. Despite the coming shifts in the management, the forward guidance and the course chosen by Carney's team is working, a survey from Markit showed Tuesday. According to survey results, the nation's 57% of services, manufacturing and construction companies are confident about economic prospects due to the BoE's pledge to keep interest rates at a record-low level. Only 4% of businesses expressed their concerns about future perspective.
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