- British Pound suffering continued this week against most major currencies, including the Swiss Franc.
- The GBPCHF pair broke the last swing low on the monthly chart, and looks set for a move towards 1.2700.
- The Brexit decision impact is clearly visible on the currency value, as it continued to weaken.
- In the Euro Area, the M3 Money Supply posted an increase of 4.9% in May 2016, more than the forecast of 4.8%.
The British pound decline continued this week against most major currencies, and the current situation looks very bad for GBP. There was a sharp downside move in the GBPCHF, which pushed it below the last swing low of 1.3400 on the monthly chart.
It looks like the pair may continue to decline and might test the 1.618 extension of the last move from the 1.3415 low to 1.4621 high.
On the upside, the 1.3000 levels can be considered as a resistance area.
Euro Area M3 Money Supply
Today in the Euro Area, the M3 is a measure of money supply, which calculates all currency in circulation, bank deposits, repurchase agreements, debt securities up to 2 years and the value of money market shares was released by the European Central Bank. The market was expecting an increase of 4.8% in May 2016, but the result was better as there was a rise of 4.9%.
The report highlighted that the “annual growth rate of the broad monetary aggregate M3 increased to 4.9% in May 2016, from 4.6% in April. The annual growth rate of the narrower aggregate M1, which includes currency in circulation and overnight deposits, decreased to 9.1% in May, from 9.7% in April“.
The market sentiment is definitely not in favor of the GBP, which means more losses are possible in the near term.