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.

Pound in British airports fell below the euro

The average exchange rate of the pound sterling against the euro in the exchange offices of many British airports for the first time fell to 99 cents.
The worst rates of those that offer 17 exchange offices in different parts of the country, was in the office at the airport of Southampton Moneycorp - 0.88 euro per 1 pound, BBC reported.
The best was 1.06 euro per 1 pound - in the office of Change Group at Prestwick airport in Glasgow.
The course of the British currency continued to decline since June of this year, after in a national referendum residents of the country decided the British withdrawal from the EU.
The average exchange rate of the US dollar increased in British airports to $ 1.08 for 1 pound.
Currency exchange offices at airports are known for their relatively low rates.

Nomura note, that the impact of Brexit already fades

Analysts at Nomura suggest, that the instability that followed Brexit, already reduced to zero, and the difference in interest rates will soon be again a major factor in currency movements. At the same time the reaction of the GBP to British political risks and to risk appetite has reduced, they added.

Data for the UK will be a key factor in the near future as the further reduction of the GBP is likely to continue if the data in the UK show clear signs of weakness, analysts said.

However, they believe, that the Bank of England will quickly face with a decline in the effectiveness of their policy and this can reduce the impact of factors on the British GBP, as earlier analysts already saw the same reaction in the Eurozone.

After trading in the range of about 1.30-35, analysts continue to expect that GBP/USD will again test 1.30. Nevertheless, analysts believe, that the mid-term potential to reduce the GBP/USD is more dependent on data on US monetary policy unless there is a change in the monetary policy strategy of the Bank of England.

Societe Generale: There is no doubt about the decline of the pound

The adjustment upward in the pair GBP/USD is due to a reduction in the number of short positions, which nearing its end, say analysts from Societe Generale. Moreover, they say, that the Monetary Policy Committee of the Bank of England is on the edge of monetary stimulus.

Analysts do not believe, that they have reason to change the long-term goals, which include entry in the range 1:20 to 1:25. At current levels they believe, that short positions are attractive in the pair GBP/USD.

Societe Generale supports opening short position in sterling.

The Bank of England brang the pound to life

On Thursday, on the foreign exchange market in the spotlight is the British pound. Today, after at their meeting, the Bank of England lowered the interest rate from 0.5% to 0.25%. This is the lowest value of the index over the past 320 years. Also, the central bank increased its asset purchase from 375 billion pounds to 435 billion pounds.
The bank's actions were expected. Mark Carney in his speeches after Brexit warned currency market players that the regulator will carry ultrasoft policy and it is likely to decrease the rate.
This decision was dictated by a desire to support the UK economy, improve goods turnover and increase the volume of industrial production. Not the least role in the decision of the Bank of England played the results of the referendum on exit of the UK from the EU structure. After the UK will be out of the EU, its economy may experience a certain drawdown, but this aspect should be soften.
The pair GBP/USD in the coming days will aim for 1,289, thus, the pound's downward trend will be confirmed in both medium and long term.

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.