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At the Forex currency market the British Pound Sterling rate continues to be traded upward on Wednesday morning amid general positive trend at the capital markets. The minutes of the last meeting of the Bank of England will be made public this afternoon which will outline balance of power in the Monetary Committee.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and started to grow, indicating resumption of purchases. Stochastic Oscillator goes up in the neutral zone today, giving a similar signal.

Forex recommendations: if buyers’ sentiments are preserved, and in case of breakdown at the level of 1.6350 the pair will go to 1.6360 and 1.6380.
Statistics released earlier showed that CPI in Great Britain grew by 0.3% m/m (+4.0% y/y) in March.  For over a year inflation in the UK has been considerably higher than the significant level of 2% to which the Bank of England adheres. Interest rate was kept at the level of 0.50% per annum, program of securities repurchase also remained in the previous volume.  

As it became known earlier that index of house prices in Great Britain increased by 1.7% m/m (+0.1% y/y) in April, as per Rightmove estimates. This has not affected the trades yet.

It became known earlier that consumer confidence in Great Britain increased to 44 points in March, as per Nationwide study, against the level of 39 points in February. At the same time index of expenditure rose to 66 points versus the previous level of 53; expectation index went up to 66 points against the 51 previously. Therefore, confidence index in the UK has moved away from the lows, which is a positive factor for the British economy. The data released today showed that CPI in Great Britain grew by 0.3% m/m (+4.0% y/y) in March.  Sterling sluggishly responded to this statistics – for over a year inflation in the UK has been considerably higher than the significant level of 2% to which the Bank of England adheres.

According to the representative of the Bank of England Mr. Sentence, inflation in Great Britain can exceed the level of 5% soon. He believes that inflation will go up during the summer. “If we wait until all signals of inflation will turn from flashing yellow to red, it will be too late to raise interest rates from the accommodative level” he stressed in his interview to the foreign news agency.   

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