Forex Analytics from LiteForex of 08.11.10: GBP: British Pound Sterling started new week with decline

At the Forex currency market the British Pound Sterling rate declines on Monday as players go away from   risky positions today amid uncertainty with Ireland and elections in Greece. In addition after the growth last week, correction is required for the Pound.  

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD, however it goes down, giving grounds for a pair sell signal. Stochastic Oscillator is giving a similar signal today.

Forex recommendations: in case of breakdown at the level of 1.6110 the pair will go to 1.6070 and 1.6010.

No UK news was released today and the Pound is being corrected after the upswing last week, regaining from the external background as well.
Last week the Bank of England decided to maintain the interest rate unchanged at the level of 0.50% per annum; assets purchase volume was also left unchanged. The Bank noted that pace of the UK economic recovery slows down not as rapidly as it seems and the latest positive GDP data of the country is impressive. However economists do not exclude that additional stimulation of the economy will be carried out; it is also probable that such decision will be made in February. The minutes of the Bank of England   meeting will be published on 17 November.

It became known earlier that asking prices for houses 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.

The data released on Thursday morning showed that Halifax houses prices in Great Britain increased by 1.8% m/m in October against expected growth by 0.6% m/m. GDP intensified and started to consolidate after the release of this statistics. 
 

 

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