GBP USD: Bank of England determines further movement

Pound is going up rapidly against the background of rising oil prices, which led to the weakening of the dollar. This situation affected workers in Kuwait – due to the reduction of salaries and social benefits. As a result, oil production in Kuwait declined from 2.8 million barrels per day to 1.1 million barrels. The market has already played this news and oil prices gradually go down, and a barrel of Brent crude has given less than 43 dollars. Now, however, much will depend on how long the strike will last, and how soon will be able to restore Kuwait’s crude oil production.

American statistics will not have much impact, as the data started construction projects and building permits are expected in different directions, and the American Petroleum Institute report on yield stocks after-hours trading.
The GBP/USD is trading in the range 1.4235 – 1.4340 sideways. If the head of the Bank of England will be optimistic, it is possible to rise to 1.4400. If the performance will wear a pessimistic character, we should expect weakening to 1.4200

 

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