GBP: British Pound Sterling stands still after yesterday’s growth

At the  Forex currency market the British Pound Sterling is traded passively after the sharp growth on the surge of investors’ optimism on Thursday. 

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD however it continues to grow, confirming a pair buy signal. Stochastic Oscillator remains in the overbought zone and is giving a similar signal.

Forex recommendations: if investors’ bullish sentiments will be maintained, buyers’ targets will be 1.5850 and 1.5880 today. 

It became known today that prices for houses in Great Britain decreased by 0.2% m/m (+2.9% y/y) in December. Real estate market is still weak in the country. 

Prime Minister Cameron said that Britain does not intend to join Eurozone, however the country supports reforms of the economic management of Eurozone in every possible way. 

BRC data released on Wednesday showed that retail prices in Great Britain increased by 2.1% on annual basis in December which was higher than the growth by 2.0% y/y in November. Number of permanent jobs in the UK is growing (54.9 in December against 55.2 in November), however according to KPMG/REC observations, growth rate has reduced. At the same time similar situation is observed in the sector of temporary jobs (52.8 in December against 53.5 in November). According to   KPMG/REC findings, the situation in the employment sector in Britain is stable, the growth continues, however the growth rate has slowed down. 

According to the representatives of the British Chamber of Commerce sharp increase in demand for exports in the country would not be a sufficient factor to stop slowing down of British economy according to the results of QIV 2010 and QI of 1011. Thus, experts of the Chamber believe that although the rate of production is high, low productivity in the service sector still remains a weak spot of the UK economy.

International rating agency Moody's stated this week that financial situation in Great Britain as well as in Germany, France and the USA remains stable and is virtually unchanged. This fact confirms the ranking of the countries at the level of AAA.

It is worth noting that at the meeting of the bank of England yesterday interest rate was maintained at the previous level of 0.5% per annum.

 

 

 

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