© Dukascopy Bank SA
During the October 27-31 working week, the Cable was moving rather similar to the EUR/USD currency pair, as calm development in the beginning of the week was changed by a considerable plunge on Wednesday, when news from the Federal Reserve pushed the Dollar to the upside in all its crosses. The Pound/Greenback started the last week at 1.6089 level and managed to gain some value on Monday and Tuesday due to negative statistical data from the North America. Before the bearish sentiment began dominating on the market, the Pound hit the weekly high at 1.6182, which was three pips below the 23.6% Fibonacci retracement. It is likely that this exact level managed to hold the bullish pressure, as the pair continued trading sideways for the next 24 hours. The Fed's announcement of the end of its stimulus program forced the Pound to dive 150 points in just a couple of hours. The remaining part of the trading week was marked by the stable development of this currency pair, while even the strong GDP growth in the US kept the pair broadly unchanged. The majority of Dukascopy traders, who participated in our weekly Community Forecasts quiz estimated the British currency to gain value in more than 62% of all cases, but the FOMC statement changed the market situation considerably.
Meanwhile, the sentiment for the Cable deteriorated significantly during past seven days, as now less than 50% of votes are set positively on the Pound. The median expectation for Friday of this week is placed around the 1.6150 level, meaning that the currency may return to the maximum level of the previous week. Among this week's news, the BoE is holding its monthly meeting on Thursday, while PMI data on main sectors of the UK economy is due to be released and will be followed by the manufacturing production statistics on Thursday.
© Dukascopy Bank SA