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At the Forex currency market the British Pound Sterling rate continues to grow on Thursday morning.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and it going up giving a pair buy signal. Stochastic Oscillator goes gown in the neutral zone, maintaining a sell signal.

Forex recommendations: in case of breakdown at the level of 1.6325 the pair will go to 1.6340 and 1.6355. If breakdown does not take place the pair will consolidate close to the current levels.

Statistics released today showed that consumer confidence in Great Britain increased to 44 points in March, as per Nationwide study, against the level of 39 points in February. Index of expenditure rose to 66 points versus the previous level of 54; expectation index went up to 66 points against the 51 previously.

Therefore, confidence index in the UK has moved away from the lows, which is a positive factor for the British economy.
The data released today showed that CPI in Great Britain grew by 0.3% m/m (+4.0% y/y) in March.  Sterling sluggishly responded to this statistics – for over a year inflation in the UK has been considerably higher than the significant level of 2% to which the Bank of England adheres.

At the meeting of the Bank of England last week the interest rate was kept at the level of 0.50% per annum, program of securities repurchase has remained in the previous volume as well.   According to the minutes of the last meeting of the Bank of England, 6 members of MPC voted for keeping interest rate at the previous level. In addition 8 people voted for leaving current program of securities repurchase unchanged.  Posen voted for the rise in the QE to 50 billion.

The data released earlier showed that CPI in Great Britain increased by 0.3% m/m (+4.0% y/y). Sterling sluggishly responded to this statistics – inflation in the UK has been considerably higher than the significant level of 2%, to which the Bank of England adheres.

The UK important data will be published on 27 April – it will be GDP in QI and monetary authorities hope to see the growth by 0.7%. If economic growth will be confirmed the rate can be increased to 0.75% per annum in the medium term. 

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