01.02.2016 - Strong statistics supported the British pound
Today was published an unexpectedly strong manufacturing PMI statistics in the UK, which in January showed an increase to 52.9, against 51.9 previously. Analysts had forecasted a decline to 51.8. It is worth noting that these news supported the British pound which is influenced by the recent statements of the Bank of England that has led to the expectation of rising interest rates not earlier that in Q4 2016. At the same time, the question of holding a referendum on the country's exit from the European Union must be held before the end of 2017 and experts estimate that it may take place in autumn. Our medium-term outlook remains negative and we recommend to use the growth of the British currency to accumulate short positions with the potential of reduction to 1.4000 and 1.3600.