Forex Blog
Blog-FX.Com

• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• 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 tries to grow at the beginning of the week

At the Forex currency market the British Pound Sterling rate makes attempts to grow on Monday.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD, however it started to go down slowly, indicating the beginning of a pair sell signal. Stochastic Oscillator still remains in the oversold zone, however it started to form a pair buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.6100 the pair will go to 1.6140 and 1.6180. If an upward breakdown will not take place the pair will continue to consolidate in the range.

It is worth noting that such development is quite possible, since the Pound will be tightly correlated with the Euro that is under significant pressure.

As the newspaper “The Telegraph” wrote today, British inflation has been experiencing increased pressure which will be demonstrated in the official statistics, scheduled for the release on Tuesday. Economist of the edition believes that index of retail prices can soar to the 20- year highs.

The key event for the Pound last week was the meeting of the Bank of England, which, however, did not bring any surprises, since the rate was left at the level of 0.5% per annum as well as the volume of assets redemption program (200 billion pounds). However, market believes that the regulator will have to start monetary policy tightening due to the high levels of inflation. According to estimates of the British economist Roger Bootle, the Bank of England will announce the increase of the rate in May this year.

Statistics released earlier was mostly positive: Index of retail prices BRC in January: +2.5% y/y against +2.1% y/y in December; GDP forecast for 2011: CBI: +1.8% against +2.0% for the previous period. “NIESR”, National Institute of Economic and Social Researches expect that the rate will be raised to the level of 1.75% against the current values by the end of 2011. At the same time it 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%.

 

[More]
Tags:
Tags Cloud: instruments produce begin eur apportionment attributed stockbroker august societies conflicting