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• 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 Sterling is trying to regain

At the Forex currency market the British Pound Sterling is trying to regain on Monday after the fall last week.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and continues to go up, giving a pair buy signal. Stochastic Oscillator is giving a pair sell signal today, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.6150 the pair will go to 1.6230 and 1.6270. If the level of 1.6060 is exeeded, traders’ targets will become the levels of 1.6010 and 1.5950.

It became known on Friday that houses prices in Great Britain fell by 0.7% against the previous growth by 0.8%; therefore, real estate prices continue to drop consistently, in spite of attenuation of the sales pace.

According to the study of RICS, a number of new proposals have also reduced. Thus, there are all grounds for the maintenance of the precarious position in the real estate sector. It is interesting that earlier Halifax released information according to which houses prices in January increased by 0.8% m/m (-2.4% y/y). It is still unclear what criterions different companies apply for their evaluations of the same sector.

Note that study of the National Institute of Economic and Social Researches “NIESR” agrees with the market sentiments. Thus, the Institute believes that the Bank of England can raise interest rate three times this year, with the main target to control the growth of consumer prices.

Earlier NIESR has already made not too rosy forecasts. Thus, the Institute recommended the UK government to postpone for some time a program of budget expenses reduction, since the strategy can bring huge losses in economy, rather than benefit. The statement made by the UK Prime-Minister Cameron earlier partly proves that this year will be extremely difficult for the country’s economy. We would remind that as it became known on Friday consumer confidence in the UK fell to -29 in January, as per GFK/NOP, against the previous level of -21. Thus, the index is at its lowest level since 1994, which indicates consumers’ skepticism regarding prospects of the economy in the nearest future.

We would remind that according to the Institute’s expectations the rate will increase to the level of 1.75% against the current values until the end of 2011. The NIESR has also upgraded its inflation forecast to 3.8% for 2011 against the previous level of 2.8%. It is expected that unemployment rates will increase to 8.7% this year against the current level of 7.8%.

 
 

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