Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

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Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

Blog Post

Тревожный звонок для покупателей фунта

August 17, 2018 Analytics

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Risk assets recovered slightly against the US dollar, but in general the market continues to be in a bearish trend.

The situation around Turkey, the Turkish lira and the growth of the debt of Turkish banks makes investors all also refrain from new investments in risky assets.

Today, one can observe the continuation of a small strengthening of the Turkish lira against the US dollar, however this harm indicates its stabilization after falling to a record low. Most likely, investors harbor some optimism from the press conference of the Minister of Finance of Turkey, which is due today, and on which Berat Albayrak will present an approximate plan for overcoming the crisis.

The growth of the Turkish currency was approximately 2.5% in line with the closing level of yesterday, and just a week the lira rose against the dollar by 9.9%. Many associate such growth with the promise of Qatar to invest 15 billion dollars in the Turkish economy.

As I mentioned above, the press conference of the Turkish finance minister can support the lira, but it can lead to a resumption of its decline if Berat Albayrak does not talk about key issues that worry many investors.

A number of experts are waiting for more resolute measures from the authorities of Turkey. It is expected that in the near future the Central Bank of the country will raise rates to curb inflation, and the government will prepare reforms that will be aimed at a serious decline in the share of borrowed funds in the private sector. It is also expected that Turkey can apply for financial assistance to its partners, which will allow executing short-term debt obligations of banks.

The British pound only strengthened slightly against the US dollar, and then declined again after data on retail sales in the UK, which in July this year resumed their growth. This is a very bad “call” for traders who expect a corrective pair growth in the near future.

As noted in the report, the increase in sales was provided by food and beverages during the World Cup. According to the National Bureau of Statistics, retail sales in the UK, compared with June, increased by 0.7%, and compared to July last year increased by 3.5%. Economists had expected sales growth of 0.2%.

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As for the technical picture of the GBPUSD pair, while the trade is above support 1.2660, demand for the pound will remain, but to increase the upward correction, a return to intermediate resistance 1.2735 is required, the breakthrough of which will open the direct road to the weekly highs of 1.2825 and 1.2890. Breakthrough 1.2660 will pound the pound to lows of 1.2570 and 1.2500.

The material has been provided by InstaForex Company – www.instaforex.com

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