At the Forex currency the British Pound Sterling rate is growing on Tuesday due to rebound after yesterday’s sales.
Forex forecast: MACD indicator for the pair GDP/USD is traded in the negative area and is going up, giving a buy signal. Stochastic Oscillator is sliding down in the neutral zone and giving a sell signal.
Forex recommendations: off the market.
Feasible event scenario at Forex: in case of breakdown at the level of 1.5610 the target for selling will be the levels of1.5500 and 1.5580, if negativism maintains in the market. If optimism geminates buyers’ target will be the level of 1.5680.
Meanwhile the British Pound is under pressure from external background.
At the meeting last week, the Bank of England decided to keep interest rate unchanged at the level of 0.50% per annum, as expected. The British regulator did not bring any surprises: program of asset purchase remained unchanged and the rate is the lowest level since May 2009. Yesterday, the Bank of England announced about introduction of an additional instrument ensuring liquidity –ECTR. The objective of a new monetary mechanism is to reduce the levels of risk caused by European debt problems. With the help of this method the Bank of England can guarantee the sufficiency of the capital for commercial financial structures.
The data released earlier showed that retail sales BRC in the similar trading floors of the UK fell by 1.6% y/y in November against the forecast of -0.5%. It was the lowest level of the index since May this year. Activity in the British construction sector declined in November, which was demonstrated by statistics released at the end last week. According to Markit estimates, PMI CIPS amounted to 52.3 points in November against 53.9 points earlier; however dynamics in new houses is positive, and it upward trend can be interpreted as an indication of the future stabilization in the sector.
Position of Great Britain played important role at the EU summit: earlier, the UK opposed revision of the document about European Union, thus refusing to sign a financial package. Prime Minister of the country David Cameron said that proposals of the summit are not in the sphere of interest of the UK and opt-out to take part in the package will not impact on the country. Meanwhile the UK will continue to try stay away from the problems of the Euro and European crisis.
London also required exceptional conditions for its economy within a new package, so that new measures tightening inspection for expenditures and the increase of financial integration will not apply to the British system. As a result 26 countries of EU have approved new conditions, and Great Britain stood aside of a new package of agreements.
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