GBP: British Pound can lose yesterday’s rise
At the Forex currency market the British Pound Sterling rate goes down on Thursday as new catalysts did not turn up at the market to continue rally of the Wednesday
Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and it goes down, giving grounds for a pair sell signal. Stochastic Oscillator is giving a similar signal, being in the overbought zone.
Forex recommendations: if bearish sentiments for the pair will be maintained, traders’ targets will be the levels of 1.5580 and 1.5540.
Representative of MPC of the Bank of England Mr. Dale noted yesterday that the Committee has focused at the moment on the issues of economic growth in the UK and on the aspects of reducing the number of spare capacity.
According to him British economy will grow at the average rate or a little above it over the next couple of years which will be supported by the low rate of the GBP and current course of monetary policy.
Dale also stressed that levels of consumer confidence are declining again as it happened in spring, however recovery of expenses in private sector offers hopes for the best.
The data on Wednesday showed that real estate prices in the UK reduced by 0.3% m/m (+0.4% y/y) in November as per Nationwide estimations against the forecast of reduction by 0.4% m/m.
It became known earlier that the UK houses prices as per Hometrack, reduced by 0.8% on monthly basis (-1.1% y/y). The situation in the sector continues to be ambiguous. Earlier the LSL/Acadametrics estimations showed that houses prices in England and Wales went up by 0.3% in October, the rise is going on for the sixth consecutive month, increasing by 6.1% on annual basis; analytics in the real estate sector contradict one another: Halifax stated that houses prices in October increased by 1.8%, Nationwide insisted that the indicator fell by 0.7%.
Earlier Nationwide economists stressed that if the trend which started in the early summer will continue in November and December; there is a chance that the prices will drop by 1% by the end of the year. Rightmove clarified that they noticed the oddity in indicators in October already; however they assumed that traders deliberately start overpricing in order to keep back property until better time.
Therefore, real estate sector in Great Britain is still in a tricky situation.
