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• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• NZD: New Zealand Dollar is descending [11/10/2011]
• AUD: sales of Australian Dollar do not subside [11/10/2011]
• JPY: Japanese Yen remains in the narrow trade range [11/10/2011]

GBP: A day is going to be challenging for British Pound today

At the Forex currency market the British Pound Sterling rate is traded upward after the sharp fall yesterday caused by the pressure from macro-economic data.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and continues to go down, confirming a previous sell signal for the pair. Stochastic Oscillator is still in the oversold zone and does not give a clear signal. 

 Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.5500 the pair will go to 1.5580 and 1.5610. If bearish sentiments for the pair will dominate, traders’ targets will be 1.5440 and 1.5410.

Yesterday investors were upset by the weak data on the levels of public sector needs in cash, which turned out to be at the level of 16.8 billion pounds. At the same time tax revenues grew by 3.1% y/y which became an annual minimum. Furthermore the level of net borrowing in the public sector amounted to 23.3 billion pounds in November against 17.4 billion pounds for the same period a year earlier.

The day is going to be strenuous for the GBP – in the middle of the trading session the UK statistics will be released, including final GDP data of the country for QIII.

The UK unemployment rate in QIII increased to 7.9% against the previous level of 7.8% and the forecast of 7.7%. Number of unemployed reduced in Great Britain only by 1.2 thousand in November against expected reduction by 3 thousand.

The data released earlier proved to be mixed. Inflation in the UK increased by 0.4% (+3.3% y/y) in November against the growth by 3.2% y/y in October. The fact, that the rate has been growing for the ninth consecutive month made economists worried. It is possible that the Bank of England will have to raise interest rate earlier to demonstrate that the inflation is under control. Interest rate is at the level of 0.50% per annum currently, the decision to leave it unchanged was made a week ago.

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