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At the Forex currency market the British Pound Sterling rate continues to grow on Thursday, taking advantage of the USD weakness after Moody's warning about ranking.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD, and is moving along the signal line, not giving any signals. Stochastic Oscillator is going up in the neutral zone, giving a buy signal.

Forex recommendations: in case of break down at the level of 1.6140, the pair will go to 1.6160 and 1.6190. If upward breakdown does not take place, the pair will consolidate at the levels, achieved earlier.

As it became known yesterday unemployment rate in the UK amounted to 7.7% in March-May, level of unemployed reduced by 26 thousand within the same period. The level of unemployed rose by 24 thousand in June, while unemployment rate amounted to 4.7%.

Average weekly earnings in Great Britain rose by 2.3% including bonuses in May against the growth of 2% in April.

Thus, situation in the labor market remains tense, largely due to the austerity measures of the government

The head of the Bank of England Mr. Mervyn King noted yesterday that in the next couple of years inflation in the country shall revert to the level of 2.0%. According to him, current monetary policy is quite logical and its aggressive tightening in the past and this year had been an unwise step. The meeting of the Bank of England was held last week: interest rate was kept unchanged at the level of 0.50% per annum. Statements on the monetary policy have not been made. It is likely that the rate will remain at the current level until Q1 2012. The minutes of the meeting will be made public on 20 July.

As it became known earlier, CPI in Great Britain fell by 0.1% m/m (4.2% y/y) in June versus the forecast of growth by 0.2% m/m. In addition, overall trade balance in the UK amounted to -stg4.06 billion in May against the forecast of stg2.700 billion. It seems that the rise of imports in May triggered the growth of deficit in trade balance of the country.

Economists of JP Morgan reported last Friday that they have revised the UK GDP downward: most likely economy of the country will be either flat in Q2, or will demonstrate slight rise by the end of Q2. By the way, as predicted by OECD, British economy will rise by 0.1% in Q2. 

According to the forecast made by NIESR, GDP in Great Britain will rise by 0.1% in June against the revised level of 0.5% in May. It is logical, because economic situation in the UK remains tense. Comparable sales index BRC in Great Britain reduced by 0.6% in June against the slump by 2.1% y/y in May.

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