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At the Forex currency the BritishPound Sterling rate continues to decline on Friday morning amid traders'pessimistic sentiments in the world capital markets.

Forex forecast: MACD indicator for the pairGDP/USD is traded in the negative area and is going up, ready to give a buysignal. Stochastic Oscillator is changing direction again in the neutral zoneand is going down gradually and giving a sell signal.

Forex recommendations: in case of breakdownat the level of 1.5610 the target for selling will be the levels of1.5500 and1.5580.

The EU summit is still going on in Europe andposition of the UK plays an important role in it. Previously, the UK opposedrevision of the document about European Union, thus refusing to sign afinancial package. Prime Minister of the country David Cameron said thatproposals of the summit are not in the sphere of interest of the UK and opt-outto take part in the package will not impact on the country. Meanwhile the UKwill continue to try stay away from the problems of the Euro and Europeancrisis.

At a regular meeting yesterday, the Bank ofEngland decided to keep interest rate unchanged at the level of 0.50% perannum, as expected.

The British regulator did not bring anysurprises: program of asset purchase remained unchanged and the rate is thelowest level since May 2009.

The Bank of England announced aboutintroduction of an additional instrument ensuring liquidity -ECTR. Theobjective of a new monetary mechanism is to reduce the levels of risk caused byEuropean debt problems. With the help of this method the Bank of England canguarantee the sufficiency of the capital for commercial financial structures.

The data released yesterday showed thatretail sales BRC in the similar trading floors of the UK fell by 1.6% y/y inNovember against the forecast of -0.5%. It was the lowest level of the indexsince May this year.

Activity in the British construction sectordeclined in November, which was demonstrated by statistics released at the endlast week. According to Markit estimates, PMI CIPS amounted to 52.3 points inNovember against 53.9 points earlier; however dynamics in new houses ispositive, and it upward trend can be interpreted as an indication of the futurestabilization in the sector.

According to representative of the Bank ofEngland Mr. Weale, economy of the country will not reach pre-crisis levelsuntil Q3 2013, and growth of capital will support consumption. He believes thatmonetary policy alone cannot fix up economy and there is a high possibilitythat QE will be launched if the state of economy does not improve after thefirst round of stimulation. Weale also indicated that there are signs of newrecession.

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