Forex Blog
Blog-FX.Com

At the Forex currency market the British Pound Sterling rate continues to grow on Thursday morning, amid external positive factor. However, the GBP has not got its own catalysts for growth as yet.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and after breaking through the signal line from top to bottom earlier, and is giving a sell signal. Stochastic Oscillator is going up in the neutral zone and is giving a buy signal.

Forex recommendations: in case of breakdown at the level of 1.6130, the target for the purchase will be the levels of 1.6150 and 1.6180.

If upward breakdown does not take place, the pair will consolidate close to the current levels.As it became known today, consumer confidence Gfk in Great Britain fell to -25 points in June against the level of -21 points in May. After the record growth in April, the indicator is falling, showing that the royal wedding had been the only factor of growth in the past.

Reduction of the indicator, which fell to the lows of 2010, has been observed in all five components. “What really causes frustration of the government is the scale of reduction, which has nullified half of the increase of last month, so that consumer confidence reached the lowest level of the whole last year”, noted in the accompanying commentary GfK NOP.

According to the data released yesterday, volume of output in the service sector of UK decreased by 1.2% m/m (+0.8% y/y) in April. At the same time net mortgage lending on the UK amounted to Stg1.098 billion in May against the value of stg1.047 billion in April. 

The minutes of the last meeting of the Bank of England was made public earlier. It is clear now that only two aggressive monetary politicians have been left, they are: Wheal and Dale. A new member of the MPC, Broadbent who substituted a “hawk” Sentence, joined conservative camp. As a result, 7 votes were against the rise in the interest rate and two for it. The Pound responded with a sharp decline.The head of the Bank of England, Mervyn King said earlier that he believes it is European crisis that is the main reason for the financial instability in the country.

According to him, fiscal instability could spread through financial markets and it is not clear whether Britain will be able to withstand the crisis.It became known earlier that house prices in Great Britain fell by 0.1% m/m (-3.9% y/y) in June, as per Hometrack estimates. Houses in the UK continue to become cheaper and it is a negative signal for the economy, given the reluctance of the British to spend money.

The data released on Tuesday showed that final GDP in the UK (third reading) increased by 0.5% on quarterly basis (+1.6% y/y) which agreed with the forecast. At the same time level of consumer spending fell by 0.6% on quarterly basis (-0.5% y/y) in Q1. 

Tags: