2016-06-30 13:16:21

Although many economists and international analysts continue to give gloomy prospects of the British pound and stock market, and the demand for safe-haven assets, such as the yen and gold is still very high, risk appetite among some market participants is increasing and they buy risky assets and the pound, particularly in the pair GBP/USD.

The results of the UK referendum will affect the world's financial markets for a long time; however, some economists believe that the worst is over.

British Finance Minister Mr. George Osborne assured market participants that the British economy is strong and stable, and the banks and financial system in the UK will be unable to cope with the situation.

Sooner or later the EU and the UK will come to agreement which will satisfy major participants of the financial market.

After the referendum the pair GBP/USD fell by 11%, reaching the level of 1.3470 today, from the level of 1.5000, losing over 1500 points. Temptation of opening long positions at the current level is very high.

But remember that, the decline in the Pound and the pair GBP/USD can continue.

US Fed policy can prevent further decline in the pair, as the Fed continues to show adherence to soft monetary policy. Futures markets have incorporated in price 17% chance of reduction in the rates instead of the increase at the meeting in November.

Fed Governor Jerome Powell said on Wednesday that the Fed is in no hurry to raise interest rates.

Today at 19:30 (GMT+2), the President of Fed St. Louis, Mr. James Bullard will give a speech. Mr. Bullard's comments may indicate whether the Fed is planning to raise rates this year, or lower them.

Today at 17:00, a head of the Bank of England, Mr. Mark Carney will give a speech. Do not forget that market volatility at this time can increase, especially in the pair with the Pound. Speeches by Mark Carney have already changed movement direction in the markets not once. It is possible that his speech will become a starting point of the rise in the Pound in the foreign exchange market, or on the contrary, may trigger its further decline.

Be careful when making trading decisions during this time period.

GBP/USD: market participants are waiting for the speech by the head of the Bank of England, Mark Carney.  Fundamental analysis for 30.06.2016