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• 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 Sterling continues to grow steadily

At the Forex currency market the British Pound Sterling continues the growth which has been observed for the eighth consecutive session.

Forex forecast: MACD indicator is in the zero zone for the pair GBP/USD, crossed with the signal line and giving a pair buy signal. Stochastic Oscillator remains in the overbought area and is giving a similar signal.

Forex recommendations: if bullish sentiment for the pair will be maintained buyers’ targets will become the levels of   1.6000 and 1.6040.

In the mid-day, by 12.30 Moscow time, the data on CPI in the UK will be made public, statistics can affect the balance of forces in the pair GBP/USD. The indicator has been exceeding the target level of the Bank of England by 3% for 11 months already.

Today the Pound was supported by statistics on the level of consumer confidence Nationwide which increased to the level of 53 points in December against the previous value of 45 points. It seems that the rise in income of population at the end of the year provided support to the indicator.

We would remind that it became known yesterday that according to the Rightmove data prices for houses in the UK increased by 3.0% m/m (+0.4% y/y). At the same time statistics released before that showed that the level of houses prices in the UK fell by 0.2% m/m (+2.9% m/m). This sector is still very difficult to estimate as the agencies use different data and approaches. It is worth emphasizing that real estate sector in the UK remains in a difficult position amid decline of consumer interest due to hazy economic outlooks.

International rating agency Moody's stated this week that financial situation in Great Britain as well as in Germany, France and the USA remains stable and is virtually unchanged. This fact confirms the ranking of the countries at the level of AAA. It is worth noting that at the meeting of the bank of England yesterday interest rate was maintained at the previous level of 0.5% per annum.

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.

 

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