2012-02-24 10:30:00
At the Forex currency market the British Pound Sterling rate hardly moves at the trading session on Friday.

Forex forecast: MACD indicator for the pair GBP/USD remains in the positive area; it is going down while volumes are decreasing and is giving a sell signal. Stochastic Oscillator goes down, and giving a similar signal.

Forex recommendations: in case of breakdown at 1.5730 the pair GBP/USD will go to 1.5710 и1.5680.

In general, previous session was neutral for the GDP and recovery of the Pound after sales is attributed to EUR/USD. Position of the GBP/USD has not changed fundamentally.

Last night Pound's good spirit has been spoiled as minutes of the last meeting of the Bank of England showed a split of opinions in the Monetary Committee. Two of its members, Posen and Miles voted for expansion of the assets repurchase program for 75 billion pounds, while other seven monetary politicians were for expansion of the volume of QE for 50 billion. All members of MPC were unanimous in regards to interest rate.

The minutes noted that some members of MPC spoke out in favour of discontinuation of further stimulation.

As a result, "hawks" are back again in the "dove-like" MPC.

Representative of the Bank of England Mr. Bean said earlier that economic growth should accelerate in the second half of the year and the rate of inflation will slowdown; while in the first 6 months of the year economic growth is slow. In general, Mr. Bean thinks that economic growth will recover gradually and will be moderate.

According to Rightmove, house price index in the UK rose by 4.1% m/m (+1.4% y/y) in February against preliminary expectations of decline of 0.8% m/m. Thus, the index demonstrates maximum increase since April 2002 on monthly basis. The rise in price was triggered by small number of deals in the market and some easing of the lending conditions.

We would remind that at the regular meeting in February, 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 is 2% 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.