Forex Blog
Blog-FX.Com

• 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: British Pound continues its spring upsurge

At the Forex currency market the British Pound Sterling rate continues to rise more steadily on Tuesday, supported by the external background.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and continues to move along the signal line, not giving a clear signal. Stochastic Oscillator continues to give a pair buy signal, approaching overbought zone.

Forex recommendations: if current investments’ sentiments are maintained in the market and in case of breakdown at the level of 1.6300, the pair will go to 1.6320 and 1.6360/70.

The UK statistics released on Tuesday showed that prices for houses continued to rise in February, by 0.3% m/m, as per Nationwide estimates. At the same time the index declined by 0.1% on annual basis. According to the experts of the agency, recovery remains weak and real estate sector is in no hurry to grow up.

Statistics which is going to be published this afternoon can change forces alignment in the pair GBP/USD. Thus, by 12.30 final level of business activity index in the manufacturing sector in February (forecast: 61.5); money supply M4 in January, data on the volume of lending in the private sector and number of approved requests for mortgage lending will be made public.

There were a lot of UK statistic releases last week: it became known on Friday that level of consumer confidence in Great Britain rose to -28 points in February, as per GfK/NOP estimates, against the previous value of -29 points. The news was moderately optimistic for the Pound; however it did not save the Pound from sales.

According to CBI which was released earlier, decline in sales volume from 37 points to 6 points is quite logical, as the program of reduction in public expenditure gave its first results. At the same time in the retail sector of the country the sentiments remains the most pessimistic since 2009. In addition, the level of retail sales rose by 1.9% m/m (+5.3% y/y) in January against expectations of growth by 0.2% m/m; net mortgage lending in the UK remained  unchanged in January, at the level of STG 1.2 billion.

We would remind that according to a representative of the Bank of England Miles, regulator’s estimates, the process of scrapping of the program of stimulation is quite slow. Miles believes that there is no need in monetary policy tightening as suggested by the supporters of the rate increase who keep eye on inflation levels. According to him, sharp tightening of the monetary policy will harm British economy, while inflation will revert to its key level of 2% by the year 2012.

 

 

[More]
Tags:
Tags Cloud: official employees margin knowledge estimate week conference intervention focus forex day trading system