The Pound is “keeping a low profile” at the beginning of the week. Overview for 16.10.2017

On Monday, the GBP/USD pair is trading close to October’s highs and watching the fundamental background very carefully.

The British Pound is slightly strengthening against the USD on Monday morning. The current quote for the instrument is 1.3284.

The statistics published in the morning showed that the Rightmove HPI in the United Kingdom expanded by 1.1% m/m in October after losing 1.2% m/m the month before. On the one hand, the indicator completely eliminated the last month’s decline. But on the other hand, the seasonal factor for the real estate is getting pretty strong, and it may support the prices in the future.  

In the nearest future, investors will also keep a close eye on the USD behavior. On Monday morning, the American currency was weak, but the week is going to be very interesting from the statistical point of view and events.

One should pay attention to the September reports on the PPI Input and Output the Retail Price Index to be published by the United Kingdom on Tuesday, the US Industrial Production in the same month, the UK labor market numbers and the Housing Starts in the USA to be published on Wednesday. Apart from this, Mario Draghi, the President of the European Central Bank, will speak on Wednesday morning.

Of course, all these factors do not cancel the influence of the Brexit negotiations and investors’ concerns about Theresa May’s ability to control this process. There are scenarios that imply the further growth of the Pound, but they may be ruined by the negative fundamental background.

RoboForex Analytical Department