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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 keeps searching drivers

At the Forex currency market the British Pound Sterling is being slightly corrected on Thursday, trying to determine movement direction. 

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and it is moving along the signal line, not giving a clear signal. Stochastic Oscillator is turning round in overbought zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.6340 the pair will go to 1.6380 and 1.6440. If the level of 1.6275 is exceeded, traders’ targets will be the levels of 1.6215 and 1.6140.

The UK data released this morning showed that houses prices reduced by 0.2% m/m (-2.7% y/y), in February, as per Hometrack estimates. The Pound did not respond to the statistics, continuing to keep eye on the external background. The UK statistics released on Tuesday demonstrated that houses prices continued to increase in February – by 0.3% m/m, according to Natianwide estimates. At the same time the index reduced by 0.1% on annual basis. According to the experts of the agency, recovery remains weak and real estate sector is in no hurry to grow up.

The fact that different agencies demonstrate various indicators indicates the lack of unified approach to estimation of the real estate market.

Last week was eventful in terms of the UK statistics: it became known on Friday that level of consumer confidence in Great Britain rose to -28 points in February, as per GfK/NOP estimates, against the previous value of -29 points. The news was moderately optimistic for the Pound; however it did not save the Pound from sales.

According to CBI which was released earlier, decline in sales volume from 37 points to 6 points is quite logical, as the program of reduction in public expenditure gave its first results. At the same time in the retail sector of the country the sentiments remains the most pessimistic since 2009.                                

In addition, the level of retail sales rose by 1.9% m/m (+5.3% y/y) in January against expectations of growth by 0.2% m/m; net mortgage lending in the UK remained  unchanged in January, at the level of STG 1.2 billion.

External background still remains the main driver of the Pound’s movement.

 

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