Forex analytics of LiteForex of 25.10.2010: GBP: Today British Pound has an opportunity to grow

At the beginning of the week in the currency market (forex) GBP is growing while the external background is positive.

Forex (forex) Forecast: MACD indicator is in the negative area for the pair GBP / USD but it is growing and thus gives a signal to buy the pair. The signal of Stochastic oscillator today is the same being in the neutral area.

Forex (forex) recommendations: if the external background is the same the targets of buyers today will be 1.5830 and 1.5870.

It is expected that British Prime Minister Cameron will report about the establishment of so-called new economic dynamism in the country during his speech today. The ruling party is now making efforts to convince the population of Britain of the rightness of their actions.

Last week the UK Finance Minister Osborne noted that the retirement age in the country would be increased up to 66 years in 2020 which would allow the economy to get extra 5 billion pounds. At the moment in Britain the pace of budget cuts are about 6% per annum the budget itself will be reduced by 33% according to the plan of the authorities.

Osborne has also explained that the government's budget in 2014-2015 will be reduced by 55 million pounds the receipt of further 7 billion pounds is expected due to unpaid taxes.

As for the situation of the labor sector Osborne has explained that the reduction of the number of jobs in the public sector is expected on average by 500 thousand.

According to preliminary calculations the total expenditure budget in 2010-2011 will amount to 702 billion pounds in 2012-2013 - 665 billion pounds.

Earlier Posen, a representative of MPC, has noted that inflation expectations in the UK continue to be restrained; the markets know that the CPI must go to 2% and the Bank of England will help to do that. 

Posen has also emphasized that monetary policy should not be an instrument to combat market bubbles.