The British pound began in October uncertainly, however traders changed their moods in favor of the currency, the data of the Commission on Urgent Exchange Trading showed.
September 26, net positions of traders in the pound took a positive value, for the first time since November 2015. Long positions have surpassed short, for the first time in almost 2 years.
The pound fell from the high of this year, $ 1.359 against the dollar and since then speculative demand for currency has been growing.
The initial impetus for sterling growth was given by the “aggressive” tone of the Bank of England. In mid-September, Mark Carney said that raising rates will happen sooner than expected.
Since then, the pound has rolled back, reaching a low, $ 1.3276, on Monday.
The currency became attractive for purchase.
On Monday, the index of purchasing managers in the manufacturing sector was published in September, which dropped from August 56.7 to 55.9. Such dynamics speak of cooling in the economy, noted Kaitlin Brooks of the City Index.
“We expect that other economic indicators will also be moderate, as the economy will gradually slow down,” she continues.
“Further decline of the currency to the area of ​​$ 1.3020, 38.2% of correction from the January low to the high of September may be met with interest from buyers,” concludes Brooks.
At the same time, one should not forget about the risks that Britain faces from Brexit’s negotiations, as well as the crisis inside the conservative party.