The Pound May Continue To Slide After A Short Rest.

On Tuesday (August 9th), the pound fell to the 1.30 barrier against the dollar, hitting a month low and was dragged down by the talk of the Bank of England's monetary policy committee, Mika F Siti.

Mika F Siti said that if the UK economy is accelerating, it may require more quantitative easing.

In an article written to the times, Mika F Siti wrote that interest rates can be further reduced, closer to zero, and quantitative easing can be increased.

Mika F Siti also cautioned that the information reflecting the extent of the UK's economic downturn is still limited.

Sterling fell 0.6% to $1.2956 against the dollar, the lowest since July 11th.

The pound rebounded to $1.30 after the June industrial production figures, which are expected to be released.

The National Bureau of Statistics announced that industrial production in the second quarter of the United Kingdom was the largest since 1999, while industrial production in June increased by 0.1% compared with the previous month, which is in line with analysts' expectations.

But against the British pound, Britain's trade deficit surged in June, and imports of goods and services were 48 billion 927 million, the highest ever recorded, and imports from European Union also reached a record high.

According to Tuesday's prediction by the National Institute of economic and Social Research (NIESR), in Britain

After the decision to withdraw from the EU, the British economy began to shrink in July.

Tobias Davis, head of UK bond sales at the Western Union Bank, said: "industrial production data are in line with the forecast, and the trade deficit is higher than expected, and the pound is expected to remain under pressure in the short term."

Some traders said the yield on British bonds fell to a record low and also put pressure on the pound.

Before the Bank of England meeting last week, speculators had been selling pounds.

The Bank of England cut interest rates to a record low at the conference and announced quantitative easing measures to cushion the impact of the UK's referendum on the economy.

Data released by the US Commodity Futures Trading Commission (CFTC) last Friday showed speculators

The short bet went up to a record high before the Bank of England held its meeting last week.

HSBC said the pound could fall further in the coming months as the current account deficit widening.

They expect the pound to reach $1.20 by the end of the year and drop to $1.10 at the end of 2017, when the euro / pound will hit parity.

Technically, in the hour chart of the pound against the US dollar, the trend of the exchange rate volatility is slant.

Technical indicators MACD (12, 26, 9) main line and signal line below the zero axis, indicating that the trend of price volatility is empty.

The relative strength index RSI (14) runs below the 50 equilibrium position, indicating that the price dynamics are empty.

Technological trends indicate that the pound is expected to continue to decline against the US dollar.

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Mika F Siti Ian McCafferty, a member of the ECB, said that if the economic downturn in the UK worsens, it is likely that more quantitative easing measures will be needed in the MPC.

The Bank of England last week implemented its first interest rate cut since 2009 and restarted its debt purchase program, saying it would take all necessary actions to achieve stability.

In Mika F Siti's column, "interest rates can be further reduced, closer to zero, and quantitative easing can be increased."

He said that in view of the limited economic response to the June 23rd referendum, there should be a more gradual approach to monetary policy.

Mika F Siti, one of the four external members of the nine members of the Bank of England, opposed the goal of increasing the target size of the government's quantitative easing programme from 2012 at the end of 2012 to 435 billion pounds.

He also said in the article that the decline in the pound in recent months and the resulting rise in import prices are expected to increase CPI by more than 2% until at least 2019.

Mika F Siti added, "if the UK economy behaved badly as expected, most members of the monetary policy committee expect to cut interest rates again this year, close to, but slightly above zero."