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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 is not in demand at the beginning of the week

At the Forex currency market the British Pound Sterling rate is going down on Monday, due to the  pressure from external background where investors turned to safe assets because of aggravation of the Middle East problems.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and is going down, giving a pair sell signal. Stochastic Oscillator remains in the overbought zone, confirming a pair buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.6300 the pair will go to 1.6325 and 1.6345.If the level of 1.6190 is exceeded, traders’ targets will be the levels of 1.6150 and 1.6110.

According to the data released today, index of houses prices Rightmove in the UK increased by 3.1% m/m (+0.3% y/y). It is worth noting that different agencies, which monitor real estate market in the UK, use different indicators, as a result published data is from time to time  diametrically various.

Meanwhile Friday’s statistics made it possible for the Pound to soar up: level of retail sales rose by 1.9% m/m (+5.3% y/y) in January against expectations of grow by 0.2% m/m; net mortgage lending in the UK remained  invariable in January, at the level of STG 1.2 billion.

According to the representative of the MPC Mr. Sentence, inflation outlook, made public by the Bank of England, is overly optimistic. He believes that downside risks to inflation are underestimated in the report of the regulator and the rates should grow more actively. At the same time Sentence does not see any specific signs of the Pound Sterling consolidation

The Bank of England believes that risks of inflations are shifted upward at the moment and forecast of economic growth appears weaker than in November. In addition there are also risk associated with the household expenditure and the recovery of British economy is unlikely to be smooth and soft.

In addition, the head of the Bank of England Mervyn King emphasized that he can see imbalance of economic system in the country and does not approve market’s expectations of the interest rate increase. He reiterated that the regulator has never reported on the increase of interest rates in advance.

Statistics released earlier showed that CPI level in the UK increased by 0.1% m/m (+4.0% y/y) against the growth by 3.7% y/y in December. 

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