2012-02-23 09:50:00

The British Pound Sterling rate is traded in black at the Forexcurrency market on Thursday, however it is still under pressure from sellers.

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 1.5660 the pair GBP/USD will go to 1.5650 and 1.5630.

Last night the Pound's goodmood was spoiled: the minutes of the last meeting of the Bank of England showed a split of opinions in the Monetary Committee. Two of its members, Posen andMiles 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 interestrate.

The minutes noted that some members of MPC had opinion that further stimulation shall be discontinued.

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

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 forabout 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.

Representative of the Bank of England Mr. Bean said yesterday 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 inprice was triggered by small number of deals in the market and some easing of the lending conditions.

GBP: British Pound does not receive support