The British pound has seen some significant gains in the foreign exchange markets recently, and on Thursday it managed to secure some advances.
Even though it later lost these and went back to its previous lower points, its overall outlook appears good.
According to some strategists, it is unlikely to reach its next potential high point of 1.3268 today.
Some said that there was not much chance of the currency dipping below the key whole number, psychologically significant level of 1.3000.
In recent weeks, meanwhile, there has been some suggestion that British negotiators might be able to secure a trade deal with the EU soon.
Some positive noises were heard from the Irish government earlier in the week, for example.
However, strategists are now cautioning pound traders away from placing too much faith in this potential outcome.
Some believe that the markets on the whole are failing to acknowledge the possibility of trade negotiations breaking down, and that the current prices do not reflect the possibility of this happening.
Other fundamental events that are likely to affect the pound soon include the recent announcement of purchasing managers’ index data.
Early figures from August suggest that commercial organisations in Britain are now speeding up in terms of trading.
Figures from IHS Markit showed that on a composite level, the country’s index now hovered at around 60.3.
This was much higher than both its previous level of 57.0 and the predicted level for August, which was not much higher at 57.1.
Crucially, these figures covered both the service industry and the world of manufacturing – suggesting that the underlying fundamentals for the pound are looking good.
In terms of the economic calendar, meanwhile, next week contains a number of important fixtures for the currency.
On Tuesday morning at 10am GMT, there will be a Distributive Trades Survey from the Confederation of British Industry (CBI).
This will shed some light on the retail industry in the country, and give some near-term indications of what is likely to play out.
On Wednesday, there will be a speech from one of the country’s senior central bankers.
It will come from Andrew Haldane, who is the chief economist of the Bank of England – and also a member of its crucial Monetary Policy Committee.
This is expected to occur at 4pm GMT.
By Thursday, however, events affecting this pair could well be dollar-focused rather than pound-focused thanks to a major event.
The Jackson Hole Symposium, which takes place in the US, will kick off on this day and may herald some changes for the dollar.
This event sees senior central bank, government and finance figures from across the world gather together.
There will, for example, be a speech from Jerome Powell – who is the chair of the US Federal Reserve – at 2pm GMT.
- Cybercrime still on the rise – be wary of potential scams
- How to Learn to Trade Unpredictable Summer Markets
- “The Dollar’s Out of Bed and it’s All Turning Red”
- Dating App Tinder – The New Scam in Town
- Scammer Alert – Trader Feedback Suggests 500investments is a Scam Broker
- What’s Going on at Binance and How Do You Find a Safe Broker to Trade Crypto?
Cybercrime still on the rise – be wary of potential scams
Safest Forest Brokers 2020
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||Your capital is at risk Founded: 2011||Global CFD & FX Broker||
BEST FOREX BROKER Visit broker
|#2||Your capital is at risk Founded: 2015||Global Forex & CFD Broker||
LOWEST FEES Visit broker
|#3||Your capital is at risk Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#4||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#5||CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010||Global Forex Broker||
Low minimum deposit Visit broker
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox