It will be at 09:30 this morning that the UK will be releasing their Public Sector Net Borrowing figures, and make no mistake about it whatever those figures reveal are going to have a direct and instant effect on the value GBP.
Therefore what you are going to be faced with having to do if you are a Forex trader, is to try and predict what those figures are, and get your trades placed relatively early on in the morning to over the time period those figures are going to be announced.
If the results show a drop in the value of Public Sector borrowing, then that will be a good sign the UK economy is performing well, and that could see GBP rising in value against all other major currencies, which is of course what many investors will be hoping for.
However, there is also the very real chance that those figures will show an increase in borrowing, and if so it will be the actual increase in borrowing that will determine the drop in value of GBP as a result of those figures being released.
CBI Industrial Order Expectations
Not long after the money markets have had time to digest the above set of figures, at 11:00 the CBI Industrial Order Expectations figures are then going to be realised, and those too could have an effect on the value of GBP.
Therefore it is true and fair to say that this morning is going to be a time when if there is to be any major swings in the value of Sterling, then it won’t be long after those figures have been released that we should see any possible fluctuations in the value of GBP so keep that in mind if you are planning on placing any Forex based trades today.
GBP Is Currently Trading Too Low
One thing that I have noticed being discussed by traders is the fact that GBP does appear to be massively undervalued and is trading at too low a figure when compared to currencies such as the Euro and USD.
What many traders are of the mind of is that there is going to be a major correction of the value of GBP against most other currencies much sooner rather than later, and most of them are of the mind GBP is going to rise up in value and quite noticeably too very soon.