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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 goes down again

At the Forex currency market on Wednesday the British Pound rate has rolled down amid investors’ renewed fears about European problems.

Forex forecast: MACD indicator is in the negative area for the pair; however it demonstrates growth, thereby creating conditions for the purchase of the pair. Stochastic oscillator is giving a pair sell signal, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.5740, the pair will go to 1.5700 and 1.5650. If the level of 1.5770 is exceeded, buyers’ targets will become the levels of 1.5790 and 1.5820.

Yesterday’s data showed that inflation in the UK increased by 0.4% (+3.3% y/y) in November against the growth by 3.2% y/y in October. The fact, that the rate has been growing for the ninth consecutive month made economists worried. It is possible that the Bank of England will have to raise interest rate earlier to demonstrate that the inflation is under control.

The data from RICS Agency, released on Tuesday showed that the UK housing market is still at the lows of 18 months. The main reason for this is the reduction of demands for houses. Thus, houses prices index in London went up to -32% against the previous level of -49%, while index of new buyers’ requests dropped to -1-8% last month against the previous level of -12%.

Last week the Bank of England decided to leave current interest rate unchanged at the level of 0.50% per annum, the volume of the assets redemption program was also left unchanged. These decisions agreed with the market expectations. In addition it also became known that foreign trade deficit with the exception of the Eurozone countries was revised to the level of 8.4% billion pounds sterling.

The situation at the UK real estate market is still one of the most complicated parts of economy. It became known earlier that, as per RIGHTMOVE estimations, houses prices declined by 3% on monthly basis in December (+0.4% y/y). However, the bulletin of the Bank of England stressed that British households have already experienced repercussions of the significant reduction of the budget costs.

 

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