On Thursday we have had continuation of strong market movements and volatility driven by the expiration of large value option at the end of the month. Another day in a row ,among other, black gold was strongly gaining . At the same time, analysts Goldman Sachs predicts declines in GBPUSD to more … 1200 pips!
Under the dictation of the PMI – Thursday main events
Thursday’s session was primarily industrial PMI publication for the largest economies in the world, and Continuing Jobless Claims in US.take a look in some of our articles from today:
- The Morning Market Overview – Chinese PMI On Highs, Oil Over 50.00!
- UK Industrial PMI Below Expectations. GBP Down
- Polish Financial Supervision Authority approves Warsaw Stock Exchange
- Prospectus Unemployment In The Euro Area Below Expectations. How The Market
- Reacts?Technical Look on GBP/USD and USD/PLN
- Lloyds Bank technical setups: EURUSDAUDUSD – Close To Potential Sale Signal
- GBPJPY On The Way To Resistance At Level 147.50
Thursday’s calendar will close the publication of building permits in New Zealand at 22:45
Goldman Sachs: sale of pound the best decision in 2017
According to the latest market commentary GS analysts, the bank revised down its forecast for GBP / USD to 1.20, 1.18 and 1.14 consecutively over the next 3, 6 and 12 months. The institution is of the opinion that short positions on the euro and pound against the US dollar should be one of the best business opportunities in 2017.
Sterling is cheap, but not as cheap as it should be – could fall by another 20-40% compared to the levels before the referendum vote. If uncertainty about Brexit and its long-term impact on the economy will persist, the decline may be even stronger.
The process of exit from the EU has not yet started, and when it will be launched in March, Article 50 allows for official start of negotiations, the uncertainty certainly will grow. Undermined politics will cause smaller amount of investment, the decline in consumption and employment, which in turn adversely will affect the gross domestic product.
All eyes on NFP – calendar for Friday
Friday’s macroeconomic calendar would be virtually empty if not for the publication of the report of the US and Canadian labor market at 14:30. Just then, investors will know the results of NFP – employment in the agricultural sector. These can, however, be unnaturally distorted (November and December) due to a number of short-term work related to election in the United States.
