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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 grows steadily in the middle of the week

The British Pound Sterling rate continues to grow at the Forex currency market on Wednesday – the pair GBP/USD somehow managed to go beyond the days-long range amid restoration of positive sentiments at the capital markets. In addition, the Pound has reached attractive purchase levels after the series of sales.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and is going up giving a pair buy signal. Stochastic Oscillator is giving a similar signal, being in the neutral zone.

Forex recommendations: if current market sentiments will be maintained buyers’ targets will become the levels of   1.5650 and 1.5685.

It became known today that number of permanent jobs in the UK is growing (54.9 in December against 55.2 in November), however according to KPMG/REC observations, growth rate has reduced. At the same time similar situation is observed in the sector of temporary jobs (52.8 in December against 53.5 in November). According to   KPMG/REC findings, the situation in the employment sector in Britain is stable, the growth continues, however the growth rate has slowed down.

BRC data released on Wednesday showed that retail prices in Great Britain increased by 2.1% on annual basis in December which was higher than the growth by 2.0% y/y in November.

However, traders’ attention is not focused on statistics as yet, investors are concentrated on the events in Eurozone and the pair GBP/USD is closely correlated with EUR/USD.

Ex-member of the Bank of England Mr. Blanchflower noted on Friday that possible raise of the interest rates by the Central bank can become a real nightmare for the UK Finance Minister Mr. Osborne in a new year. He stressed once more that rates should be kept at a low levels, as their rapid growth will strike a blow on the houses prices and consumption levels.

Osborn noted earlier, that all measures required to improve economic growth have been taken by the country, and budget edition in March will include both new and old steps to stimulate growth. British Finance Minister also stressed the need to continue reforms the country, as the plan of the deficit reduction can stimulate the growth of confidence in the economy.

According to the representatives of the British Chamber of Commerce sharp increase in demand for exports in the country would not be a sufficient factor to stop slowing down of British economy according to the results of QIV 2010 and QI of 1011. Thus, experts of the Chamber believe that although the rate of production is high, low productivity in the service sector still remains a weak spot of the UK economy. In general this opinion agrees with the earlier forecast made by various agencies. It is possible that such trend will be continued in QII this year.

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