© Dukascopy Bank SA
During the January 18-22 working week, the Cable was moving in a rather mixed environment, as calm development in the beginning of the week was changed by a considerable plunge in the middle of the observed period. The Sterling/Greenback pair started the last week at 1.43 level but went down already on Tuesday, to the new 7 year's lows, due to announcement made by the Bank of England Governor Mark Carney who said that now is not the time to raise interest rates. Moreover, he added that the continuation of oil's decline will put further pressure on inflation. The next day, the British pound was again on the back foot, testing below the $1.41 level, such a level not seen since March 2009. However, at the end of the week, the UK's pound kept most of the gains made during Friday's morning session, after reaching a one-week high. However, gains were limited as UK retail sales data disappointed and US macro data supported the Greenback.
Meanwhile, the sentiment for the Cable changed on the opposite side during past seven days. The median expectation for Friday of this week is placed around the 1.427 level. Among fundamental news, Britain's GDP will be released on Thursday. Meanwhile, the Fed is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision. Also, the US is to round up the week with a preliminary estimate of fourth quarter growth, as well as a look at business activity in the Chicago area and revised data on consumer sentiment.
© Dukascopy Bank SA