At the Forex currency market the British Pound Sterling rate stands still on Monday amid uncertain sentiments at the global capital markets while signals indicate that it will be consistent to buy the GBP.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and it goes up confirming a previous buy signal for the pair. Stochastic Oscillator is giving a similar signal today being in the overbought zone.

Forex recommendations: in case of breakdown at the level of 1.6070 buyers’ targets will be the levels of 1.6100 and 1.6130.

It became known today that houses requested prices reduced by 0.9% m/m (-0.1% y/y) as per Hometrack estimation. Economists pointed that pace of decline accelerated after some stagnation while the annual rate of decline had been observed for the first time in January this year.

It became known last week that the UK houses prices as per Nationwide estimation continued to decline in October and fell by 0.7% on monthly basis (+1.4% y/y). Nationwide economists point that if the trend which started in the early summer continues in November and December the prices will have chances to drop by 1% by the end of the year.

It seems that both investors and economists became accustomed to the low levels of the UK real estate market, otherwise what else can explain observers’ tranquility in this matter.

Earlier Posen, representative of the Bank monetary committee pointed that the rise in inflation above the target level even by 1% will not be crucial and it will take some time – longer than previously expected to set quantitative easing of monetary policy. Posen does not believe that additional stimulation is required for the British economy now.

The head of the Bank of England Mr. King noted that the draft Basel III which has been discussed last month will not become a miracle cure for the new round of financial crisis. However according to the monetary politician, British regulator will not force banks to comply with the contract although he holds more stringent views on the problem.