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At the Forex currency market the British Pound Sterling rate is traded downward on Monday in response to another round of fears of Investors about state of affairs in Eurozone and once again triggered risk aversion.

Forex forecast: MACD indicator for the pair GBP/USD is traded in the positive area; it started to descend moderately and is giving a sell signal. Stochastic Oscillator remains in the oversold zone, maintaining a sell signal.

Forex recommendations: in case of break down at the level of 1.5750, target for sale will be the levels of 1.5730 and 1.5720.

It became known this morning that house prices Rightmove in the UK fell by 3.1% m/m (+1.2% y/y) in November. The Pound did not react to statistics too actively, since it had already been under pressure from sales.

According to observers from NABE, unemployment rate in the UK will be around 8.7% in 2012 against previous forecast of 8.5%; there is a chance that employment will increase up to 100 thousand in Q4 this year. It is expected that policy of the Bank of England will continue to be soft next year and GDP will amount to 2.2% in Q1 next year against predicted level of 2.5% in Q4 this year.

In addition, it is also possible that QE program will be expanded.

It became known earlier that consumer confidence index Nationwide in the UK declined to the record lows of 36 points in October against the forecast of 43 points. Consumer expectations fell to 48 points against previous level of 62 points. It is a negative signal because steady economic growth cannot be expected without revival of consumer sentiments. In addition, according to the data released yesterday the Bank of England has revised its inflationary expectations, as per the Bank estimates, in three years time CPI will be 1.5%, while volume QE will be STG275 billion and interest rate will be consistent with market expectations.

The head of the Bank of England Mervyn King immediately noted that economic situation in Britain remains complex and growth of industrial output shall be practically zero since mid-2012, although in the short-term it will be weaker than previously expected. According to him, resources of monetary policy to stimulate economy are limited.

At the meeting which was held earlier, the Bank of England kept interest rate unchanged at the level of 0.50% per annum as expected.   The rate of the Bank of England is at the current record-breaking low level since March 2009, largely due to the weak economic growth and rapid rise in inflation.

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