Forex Blog
Blog-FX.Com

At the Forex currency market the British Pound Sterling rate is traded slightly upward on Tuesday, still staying in the three-day trading range of 1.5640-1.5740.

Forex forecast: MACD indicator for the pair GBP/USD is traded in the negative area and is going up while volumes are increasing; it is giving a buy signal and is prepared to break signal line from bottom to top. Stochastic Oscillator remains in the overbought zone and is giving a similar signal.

Forex recommendations: in case of breakdown at 1.5735, the pair will go to 1.5740 and 1.5760.

It became known today that consumer confidence index GfK rose to -29 points in January against the level of -33points in December. This is the record index since summer 2011 and is definitely very positive.

British Prime Minister Cameron believes that as long as EU authorities do not take energetic measures to implementanti-crisis program, there is no point to raise the issue of increasing IMF reserves. Therefore, Britain maintains tough stance in regards to the debt situation in Eurozone. Cameron thinks that Germany shall act faster and with more confidence.

According to the head of the Bank of England Mr. King, 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 the previous three months. Similar situation is in the retail sector as well. Buyers failed to keep retailers happy in January: following the rise in volumes of sales in December, retail sale fell by 22% in January against +9 in December. This has been the lowest value since March2009. Outlook in the retail sector is not too optimistic. Thus, companies in this sector can go to three-year lows again in February, as volumes of orders have declined once again.

Tags: