Pound investors are still doubted about the plans of the Bank of England
– This week, all three major UK PMI will be released, which means the week is a major weekly trading week for a pound. Since the Bank of England cited the increase of interest rate, The British pound trend has also been changed. After this incident has not been published good news from England. The GDP index of the second quarter of the year was negatively adjusted and the Loan Mortgage Permit Index rose slightly in August. As a result, the market needs to see positive reports in order to trust to the UK central bank’s interest rate increase probability. Accordingly, PMI reports of this week in England are very important.
– If the PMI indices of the service, production, and construction sectors have good growth, the market will trust to the next step in raising interest rates in England, and we will see a sharp rise in pound purchases. But if the reports show a slowdown in economic activity, the market will doubt to the Bank of England’s interest rate program, and the pound will lose its recent gains. In September, EURGBP showed a strong downtrend, which is likely to trigger a corrective rally, and the weak PMI reports from England could make this rally..,