- Pundkrakket looks like a capitulation – Hegnar Online

the Pound went on a so-called “flash crash” in the asian trading tonight, and the GBPUSD was at the lowest down over six percent to 1,1841.

the Pound was thus down in their weakest since may 1985, and the intraday fall is the biggest since the british currency plunged over 11 per cent the day after the Brexit-the vote.

- A blessing and a headache

Today’s stool was not some fundamental explanation, but the lack of liquidity. The weakness in the pound will be a blessing for british industry and a headache for the Bank of England (BoE), writes Nordea analyst Aurelija Augulyte in an update.

She adjusts the now his estimates for the pound sterling.

Just over the new year think Augulyte now that the GBPUSD-crossing is in 1,26, against 1,31 earlier. By the end of 2017 nedjusterer she from of 1.45 to 1,34, while the analyst an opportunity than 1.44 at the end of 2018, against the former 1,47.

EURGBP-the cross-field adjusted from 0,84 to 0,87 (just above the new year), from 0,76 to 0,82 (by the end of 2017), and from 0,78 to 0,80 (by the end of 2018).

- Looks like a capitulation

- We see a normalization forward direction, with a view that the weakness in the british economy will only be temporary. The latest figures, including this week’s PMI figures for the manufacturing and the service sector, suggesting a stronger economy than most were expecting, including the Bank of England, writes Augulyte.

We have also had several statements from the BoE, indicating that further easing is not a “done deal”. Further weakness in the pound sterling should in fact, if the driver is the outflow of capital, meet the BoE with innstramninger, not easing, she continues.

Technically seem Augulyte that night moves looks like a capitulation.

- 0,88-0,91 for the EURGBP has been a strong resistance level in trade post-Lehman. And while there is no anchor for the GBPUSD, also met dollarindeksen nøkkelmotstand in the night, she writes, and refers to several graphs.

EURGBP is at the time of writing in 0,8939, corresponding to a pundsvekkelse of 1.2 per cent.