The Pound continues falling. Overview for 09.10.2018
GBPUSD is retreating; the FPC Statement didn’t give the British currency a confidence boost.
The British Pound continues falling against the USD on Tuesday afternoon. The current quote for the instrument is 1.3039.
The FPC Statement published today said that the United Kingdom achieved significant success in decreasing risks of possible complications between the country and the European Union even if the Brexit would not go well. However, the Financial Policy Committee believes that it is necessary for the UK government and the Brexit Secretary to persuade the European Union to accept a set of measures that will make the Brexit risks less severe.
Apart from the Brexit, the Committee is worrying about the loan growth of the British companies: it believes that the process is going too fast.
In addition to that, according to the Committee the United Kingdom should take into account all external risks connected with the global vulnerability as well. This may probably refer to “trade wars” between the USA and China.
Another pressure put on the Pound is the strengthening of the American currency, which is rising again thanks to the increased profitability of the US bonds.
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