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11.06.201809:24 Forex Analysis & Reviews: Pound loses to dollar

Long-term review

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GBP / USD

On Friday, the US dollar index had increased by 0.13% due to the weakening of the euro on negative industrial production data in France and Germany. Also, the pound lost 16 points due to unpleasant news from the EU negotiator Michel Barnier on Brexit about the UK's refusal to link to the customs union. This means that the EU insists the introduction of a customs border between Great Britain and Northern Ireland. All this unequivocally shows the systematic and unrelenting pressure of the EU on the UK, which can lead to a very bad deal for the latter.

The volume of UK industrial production in April for today's data is expected to grow by 0.1% (year-on-year growth is expected to slow from 2.9% to 2.7%). While the production in the manufacturing industry is projected to grow by 0.3%, and production in the construction sector may show an increase of 2.4% against -2.3% in March. The trade balance may improve, with the forecast for April at -11.50 billion pounds against -12.30 billion pounds sterling. Forecasts are moderately positive, but the external political situation intensifies negative tones. Probably the pound's decrease to 1.3330.

* The presented market analysis is informative and does not constitute a guide to the transaction.

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