© Dukascopy Bank SA
In line with strongly negative expectations for the Cable during the previous trading week among Dukascopy Community members, the most traded pair with the Pound went considerably down in five working days, slipping below the important psychological level of 1.60. Still, 89% of traders expected that to happen last week. Pair started the week in a rather calm manner, as portions of negative data on British current account balance, American consumer confidence and manufacturing activity in the Chicago region forced the pair to remain stable, thus abolishing the idea of giving preference to any of currencies. On the other hand, a lot of positive statistics in the end of the week pushed U.S. Dollar higher, as it included improving labor market data and trade balance of the country. Better than expected U.K. construction PMI was not able to help the pair to avoid decline and reach the 1.5975 mark at market closing time on Friday.
Compared to previous five days, this week Dukascopy traders became more negative on U.S. currency, as more than 66% of all votes are set to buy the Pound. Despite quite positive sentiment, the median prediction for October 10 with great difficulty crossed the 1.60 mark. The biggest part of forecasts, however, remains above the 1.59 major level, meaning that it has a good potential to start the long-awaited recovery after Scottish independence referendum, which kept the Pound under some increased pressure. This week traders are waiting for speeches from presidents of Federal Reserve Banks of Kansas City, Minneapolis, New York, Chicago, St.Louis, San Francisco and Philadelphia. Moreover, on the British side attention should be paid to GDP estimates for the third quarter of this year, data on property prices and trade balance, as well as Bank of England's scheduled decision on interest rates.
© Dukascopy Bank SA