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GBP: British Pound is at three-day peak
At the Forex currency market the British Pound Sterling rate is traded with slight deviations on Thursday remaining close to the highs of January based on stable external background.
Forex forecast: MACD indicator for the pair GBP/USD is traded in the negative area and is going up while volumes are low, and is giving a buy signal. Stochastic Oscillator remains in the overbought zone and is giving a similar signal.
Forex recommendations: in case of breakdown at 1.5665, the pair will go to 1.5670 and 1.5690. If pessimism prevails, sellers' target will be the level of 1.5455.
Weakness of the USD after yesterday's "dove-like" meeting of the U.S. Federal reserve enables the Pound to remain at the highs of 2012.
British Prime Minister Cameron believes that as long as EU authorities do not take energetic measures to implement anti-crisis program, there is no point to raise the issue of increasing reserves of IMF. Therefore, Britain maintains tough stance in regards to the debt situation in Eurozone.
According to the head of the Bank of England Mr. King, expected decline in inflation assumes possibility of additional QE; however, rates will likely remain at the current levels. King emphasized that recovery of the British economy will be slow and jerky. He also said that terms of lending are detrimental to economic recovery. At the same time the Bank of England is ready to provide liquidity to banks if a need will be.
Unemployment continues to thrive in Britain. According to estimates, unemployment rate rose to 8.4% in November against the forecast of 8.3%, level of unemployed increased by 118 thousand over three months against +128 thousand in three months before that.
Representative of the Bank of England Mr.Posen said earlier that he still adheres to "dove-like" attitude to monetary policy in the country. Thus, he believes that inflation pressure is decreasing rapidly and economic growth is increasing, although in a slow pace .Decision on QE will be adopted at the meeting in February, now members of MPC are discussing possibility of increasing volumes of assets purchase. Posen stressed that this is not yet sufficient to stabilize situation in British economy.
