16.11.201810:31 Forex Analysis & Reviews: The fall of sterling may continue

Britain's inability to "worthily" get out of the EU has already begun to turn into chaos. The retirement of the three cabinet ministers, T. May, among whom, in fact, is also the minister himself of Brexit, faces grave consequences for Britain.

The news of the resignation of the Minister of Affairs of Brexit D. Raab collapsed course of sterling, which at the moment, fell by almost three figures and remains under pressure. Observing the development of the situation, we can assume that against the background of the slowdown in the growth of the national economy, as well as slowing inflation and, most importantly, a high probability that Brexit will be "tough" for the UK. The British currency may fall in tandem with the US dollar to 2016 low of the year.Following Thursday's results, the US dollar continued its steady decline against major currencies. In our opinion, this was not due to the strengthening of the weakness, but, most likely, in line with the fixation of previously received profits. This happened despite the continuing signals of increased inflationary pressure in the US and a tough position of the Fed aimed at continuing the interest rate increase cycle, which the Fed Chairman J. Powell said in his comment this week.Also clearly a plus for the dollar rate are the data on retail sales and the price index on exports and imports published on Thursday. According to economic statistics, the core retail sales index jumped 0.7% in October against a 0.1% decline in September and expectations for a 0.5% increase. The export price index jumped 0.4% from a month earlier, down 0.2% and a 0.1% growth forecast. A similar picture is observed in the dynamics of the import price index, which rose by 0.5% against a 0.2% increase in September and expectations for a 0.1% increase.The values of these indicators "pour" water on the inflation mill, confirming the fact of its strengthening. Of course, in this case, the Fed will confidently raise rates and continue to reduce its balance sheet, which will be a strong supporting basis for the growth of the dollar in the near future.Forecast of the day:The currency pair AUD / USD is trading below the level of 0.7300. Local growth of the pair may stop if it does not overcome this mark. In this case, the pair may remain until the G20 summit in the range of 0.7190-0.7300, dropping to its lower boundary.The USD / JPY currency pair is trading above the level of 112.30 while remaining in the short-term uptrend. The pair may continue to decline to 112.60 in the wake of rising tensions in the markets after overcoming the level of 113.30.