The dollar keeps strenghtening against majors
Pound
The Bank of England deputy governor Ben Broadbent’s comments acted as a catalyst for the downward movement. The optimistic data about the supplying managers index for the UK construction industry were not accepted by the markets. Instead, they decided to focus on the Broadbent’s comments. The Monetary Policy Committee member made it clear that the UK is not ready for a rate rise and that buyers should think carefully about the debt levels.
The bulls have very little chances for the upward movement development - the UK 10-year bond yield is located near the annual lows that points out to the inflationary pressure decline.
Trading recommendations
We advise to short with the first target – 1.5850.