BNP Paribas: the pound will fall

Growth of the British currency at the data on inflation was stopped around $ 1.6467 and against the background of a fixed short-term profit, she adjusted the accounts below, but attempts to reduce again attracted buyers, and to date, bulls managed to break through to a fresh session in the area of the maximum $ 1.6480. Ofer is still around that mark, and up to $ 1.6485, but dealers noted that the desire of the major European stock indexes to rise above is encouraged by the bulls, and a further increase to $ 1.6500 and $ 1.6520 is quite possible scenarios. However, above the sixty-fifth figure is expected to enhance the activity of notable vendors, and general mood against the pound is not very positive. So camp bears have currency strategists BNP Paribas, who believed that the structure of the economy of Great Britain was no reason to expect a speedy recovery meaningful, bearing in mind that domestic demand was the main driver of growth in recent years, and now he is very weak, while the labor market continues slow. The bank noted that in these circumstances, much depends on the corporate sector, the growth of the national currency which is a very negative factor. At BNP Paribas noted that the conduct of the Bank of England shows the desire of the Central Bank to give further impetus to the economy, the prospects for tighter fiscal policy while maintaining a soft monetary threaten British currency decline. At BNP Paribas believes that the pound / dollar could fall from current levels by 10% - 15%.