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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: British Pound continues to evoke traders’ interest

At the Forex currency market the British Pound Sterling rate continues to go down today under the pressure caused by investors’ drift into safe assets due to the aggravations in Libya

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD, however it continues to go down slightly, giving a pair sell signal. Stochastic Oscillator is coming out of the overbought zone, starting to form a pair sell signal.

Forex recommendations: in case of breakdown at the level of 1.6150 traders’ targets will become the levels of 1.6110 and 1.6050.

It is quiet in Great Britain this morning, macro-economic background is tranquil and all currency players’ attention is focused on the developments in the Middle East.

Statistics released yesterday showed that index of houses prices Rightmove increased by 3.1% m/m (+0.3% y/y) in Great Britain. It is worth noting that different agencies, which monitor real estate market in the UK, use different indicators and as a result published data from time to time differs diametrically. 

Meanwhile Friday’s statistics made it possible for the Pound to soar up: level of retail sales rose by 1.9% m/m (+5.3% y/y) in January against expectations of grow by 0.2% m/m; net mortgage lending in the UK remained invariable in January, at the level of STG 1.2 billion.The Bank of England believes that risks of inflations have shifted upward at the moment and forecast of economic growth appears weaker than in November. In addition there are also risks associated with the household expenditure and the recovery of British economy is unlikely to be smooth and soft. 

The head of the Bank of England Mervyn King emphasized that he can see imbalance of economic system in the country and does not approve market’s expectations of the interest rate increase. He reiterated that the regulator has never reported on the increase of interest rates in advance. According to the representative of the MPC Mr. Sentence, inflation outlook, made public by the Bank of England, is overly optimistic. He believes that downside risks to inflation are underestimated in the report of the regulator and the rates should grow more actively. At the same time Sentence does not see any specific signs of the Pound Sterling consolidation. 

We would remind that statistics released earlier showed that CPI level in the UK increased by 0.1% m/m (+4.0% y/y) against the growth by 3.7% y/y in December.
 

 

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