2012-02-16 10:55:00
The British Pound Sterling is traded downward at the Forex currency market on Thursday, reflecting negative sentiments of players at the world capital market.

Forex forecast: MACD indicator remains in the positive area for the pair GBP/USD, although it started to go down and is ready to give a sell signal, volumes are decreasing. Stochastic Oscillator came back to the oversold zone and is giving a sell signal.

Forex recommendations: in case of breakdown at 1.5670 the pair GBP/USD will go to 1.5650 and 1.5630. Consolidation of the pair at the current levels is possible.

It became known today that consumer confidence Nationwide increased to 47 points in January against the level of 38points in December. The report provides the following information: index of expenditure amounted to 78 points against previous 77 points; index of business expectations rose to 64 points versus 50 points earlier.

Therefore, confidence of British consumers have recovered on the first month of the year from the record lows; nevertheless buyers are remain cautious, especially in regards to large acquisitions

The data released on Tuesday was quite good: CPI decreased by 0.5% m/m (+3.6% y/y) in January against the level of +4.2% y/yin December. According to the data released at the end of last week, volume of production in the construction sector declined by 0.5% on quarterly basis(+0.9% y/y) in December against preliminary expectations of growth of 0.2%.Authorities have already reacted to this statistics, stating that the index cannot be the basis for revising country's GDP.

At the regular meeting last week the bank of England increased asset repurchase program by 50 billion pounds, to the level of 325 billion pounds, as expected. Mr. Osborn stated commenting this decision that the increase of QE will help achieve inflation target (official target is2% and it has not been changed for about two years.) According to Osborn, current monetary policy is still the primary instrument of influence on economic changes. Analysis of the Bank of England proved efficiency of QE.

Earlier, rating agency Moody's announced that forecast for the UK rating was downgraded to "negative", however existing rating was left at the previous highest level of AAA. The Pound became agitated by this news: rating agencies used to stay away from Great Britain. However, it is becoming more evident now that even tough opposition to European problems will not be able to protect Britain from negative impact.