GBP/USD (current price: 1.3250)
The Pound had a very quiet day as well on Monday, as it traded right around the closing price of last week. Cable is now lower yet again, and traders are likely to focus on the increased QE by the Bank of England this week, as the schedule of the Brexit will also dominate the sentiment. The British Construction PMI missed expectations by more than 4 points with a reading of 46, which points to a massive contraction of activity, adding to the fears regarding the British economy.
Our assessment: The Pound will likely test, and violate the Brexit lows as the increased monetary easing and the political uncertainty continues to weigh on the currency.
