Weak property growth in the UK

Property prices in the UK maintain their weak growth in October this year. Compared to the same month last year, properties rose by 2.5%. The range of raise is similar to that of the beginning of the year.
The rise in property prices in the UK has slowed down significantly over the past year as a result of the uncertainty associated with BREXIT.
Property grew by 0.2% on a monthly basis, which was a serious slowdown compared to the first half of the year.
Low interest rates and steady levels of employment give some relief to the demand for real estate.
On the other hand, the uncertainty associated with BREXIT and the conditions for leaving the Union can be factors that aggravate the situation for the property market.
The decision of the central bank this week to raise interest rates may have a further negative impact on the properties.
Property buyers and mortgage lenders are already adjusting their finances in a line that fits the interest rate hike.

BoE bonfired the pound up

The decision of the UK Supreme Court that the government can not take responsibility for launching the procedures for Brexit without the approval of the Parliament as well as the changed course of policy of the Bank of England allowed "bulls" on the GBP/USD to withdraw from the prolonged consolidation. The participants of Forex market are talking about soft Brexit, as well as the possibility of transferring it from March 2017 to a later date. This has had a serious support to the sterling.
The results of the June referendum, the emphasis on the BoE monetary expansion and the threat of an economic slowdown under the influence of Brexit weights hung on the feet of sterling. By late autumn, it becomes clear that the euphoria of the "bears" on the GBP/USD over policy is comparable with similar feelings of "bulls" on the S&P500 due to the potential victory of Hillary Clinton in the presidential election in the United States. The change in the balance of power has turned back in the polls for US stocks, as all we've seen. It is time for pound sellers also to moderate their appetites.
However, much more interesting is the fact that Mark Carney and his colleagues believed that the 6% devaluation of the pound in October will lead to acceleration of inflation of 0.7% in 2017. The forecast for CPI was increased to 2.7% for the period 2017-2018. At the same time the central bank has emphasized the change of repo rate in either direction, depending on the economic outlook. Thus, if inflation is expected to grow faster (and in the opinion of a number of banks and investment companies, it is able to rise to 3.5-4% in the next year), the BoE will be forced to tighten monetary policy, which is a serious "bullish" driver for the pound.

British companies will have to adapt their equipment to the new coin of 1 pound

British companies have to prepare for the issuance of a new 12-sided coin of 1 pound, according to the Ministry of Finance of the country.
The site of the Royal Mint warns the companies of the need to adapt their equipment and prepare employees to the issue of the new coin, which is scheduled for March 2017. All machines that accept cash, have to be modified at this point.
There will be a 6-months long transition period for the companies to provide the ability to receive both new and old coins. After that, the current coin of 1 pound will be derived from a wide circulation, but most banks and post offices will accept old coins.
These actions are due to the fact that approximately every 30th coin of 1 pound now is a fake, according to the Mint.
"The new coin of 1 pound will be the most secure of its kind, and its features will be a serious barrier to counterfeiters," - said the representative of the Ministry of Finance David Gouk.
The new coin is composed of two metals: gold-colored outer ring - nickel and brass, inner ring of silver - from nickel alloy. On the coin there is an image that changes with graphic symbol of the pound sterling by the number 1, if you look at the coin at different angles, like a hologram. Around the rim on one side of the coin there is an inscription in tiny letters, "one pound".
In addition, the coin has the additional security measures to protect against counterfeiting, the details of which were not disclosed.

Canadian Carney decided to stay at the head of the Bank of England

The head of the Bank of England Governor Mark Carney said on Monday that he would remain in charge until July 2019, a year longer than planned, to ensure a smooth transition of the country from the EU, although still goes before the end of the procedure.
British pound, which collapsed by about 20 percent after the referendum on UK withdrawal from the EU because of concerns about the economic prospects for the UK, on ​​Monday rose to a daily high - $1,2240 on the news about the Carney's decision to stay as head of the regulator.
Canadian citizen Carney came under a barrage of criticism from politicians who favored a divorce with the European Union, since sounded the alarm, warning of the risks for the economy. He has the right to remain as a head of the British regulator until 2021, but decided to call it earlier.
"I am honored to extend my term in office for an additional year until the end of June 2019" - he wrote to Finance Minister Philip Hammond. The letter was published by the regulator.
"This should help to ensure an orderly transition of the United Kingdom to a new relationships with Europe."
The Government welcomed the decision of the 51-year-old financier.
Carney is the first foreigner in the 322-year history of the British central bank. The father of four students explained his desire to retire as early as 2018 by personal rather than political reasons.
However, the pressure on Carney was echoing similar pressure under which the regulators were in different countries of the West. US presidential candidate Donald Trump suspect the Fed keeping interest rates low because of the political pressures from the White House. The German Chancellor Angela Merkel called reasonable citizens' questions to the European Central Bank over the record low interest rates.

Citi: The price of the pound would fall before the meeting of the Bank of England, and after it

According to the forecasts of economists of the bank, on Thursday the Bank of England will lower its key interest rate to 0.25% and will resume its program of buying assets in which over the next four months in the financial system will be infused £75 billion.

Acoording to analysts, forecasts for the economy and inflation of the country will likely to be reduced.

Market expectations for expansion of incentives were formed during the week, so for the Bank of England will be difficult to maintain the status quo, which is negative for the pound, say analysts.

The bank remains bearish about sterling and believes, that the decline in interest rates and the resumption of quantitative easing program would become a longterm signal.

Given the above, analysts of the bank see major prerequisites for decline in the pound before the meeting of the Bank of England and after it.

Credit Agricole waiting for growth of the pound to 1.35 dollars

The pound registered a winning session against the dollar on Thursday. British currency acquitted positive expectations and fully recovered the losses that was accumulated the previous day. Meanwhile, resistance at 1.3342 was breached and the pair made a test of the key level at 1.3496. If bullish sentiment continues in the future, it will be broken soon. Trade on Thursday started at a price of 1.3144 and the pound rose by 196 pips during the day. The highest value for the day was reached at 1.3469.

The pound may continue to grow to levels around 1.3500 dollars, which is the original purpose of growth, according to currency strategists at Credit Agricole. Bank of England made it clear that their policy probably will change in August.

The inaction of the Central Bank on Thursday was a surprise to the markets, which expected a reduce of interest rates. The bank's decision highlights the difficulties faced by the Bank of England in the absence of clear data on the country's economy after Brexit, as risk sentiments are recovered and the British pound corrected recently, commented analysts of the bank.

Yesterday the Bank of England unexpectedly left interest rates at 0.5%. Futures pointed likely to reduce interest rates at yesterday's meeting of 86% compared to 11% on June 23, the day of the referendum, say analysts.