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 to descend, however signals indicate that growth will be resumed

At the Forex currency market the British Pound Sterling rate continues to descend, however main traders are back at the market after the holidays and they will determine strategies for the incoming year.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD, however it started to go up, giving grounds for a pair buy signal. Stochastic Oscillator is giving a similar signal, being in the neutral zone.

Forex recommendations: if bullish sentiments intensify will among investors and in case of breakdown at the level of 1.5500 buyers’ targets will become the levels of 1.5520 and 1.5550. Otherwise the pair will continue to consolidate close to the current levels.  

According to the British financial press all those measures on budget savings adopted by the authorities of Great Britain earlier will be continued in order to reduce the level of budget deficit in the country. Observers believe that the risk of repeated recession is low and the reduction of government expenditures along with the rise of taxes does not give grounds for this.

However, many experts continue to assess reduction of budget spending in Great Britain as an excessively risky step.
In general, at least first half of the year 2011 will be complicated for the British economy.
CIPD, the UK Institute of Personnel Development believes that the situation in the employment sector can be complicated for UK economy in 2011, because unemployment rate can rise to 9% and employment can reduce to 200 thousand jobs.

According to CIPD estimates reduction in the public sector will amount to about 120 thousand jobs and about 80 thousand in the private sector. We would remind that British Government plans to reduce the number of staff in public sector by 330 thousand by 2015.
However, OBR, Committee on Budget Responsibility claimed that dismissal will be compensated by creation more that 1.5 million jobs in private sector. Anyhow, the year 2011 is not going to be easy for the UK economy.

Note that unemployment rate in the UK increased to 7.9% in QIII against the previous level of 7.8% and the forecast of 7.7%.  Number of unemployed in the UK decreased only by 1.2 thousand against expected reduction by 3 thousand.

 

[More]
Tags:
Tags Cloud: international deposited bill breakout bank of canada implementing broker account problems order register