GBP: British Pound Sterling started new week with decline

At the Forex currency market the British Pound Sterling is traded with decline on Monday morning amid obscure external environment.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD, however it is going up slightly, which gives grounds for a pair buy signal. Stochastic Oscillator is giving a pair sell signal, being in the neutral zone.

Forex recommendations: if the current external background is maintained and bearish sentiments are intensified and there is also a breakdown at the level of 1.5740, then traders’ targets will become the levels of 1.5700 ? 2.5650.

It became known today that as per RIGHTMOVE estimations, houses prices declined by 3% on monthly basis in December (+0.4% y/y)
However, the bulletin of the Bank of England released today stressed that British households have already experienced repercussions of the significant reduction of the budget costs.

Last week the Bank of England decided to leave current interest rate unchanged at the level of 0.50% per annum, the volume of the assets redemption program was also left unchanged. These decisions agreed with the market expectations. In addition it also became known that foreign trade deficit with the exception of the Eurozone countries was revised to the level of 8.4% billion pounds sterling.

British ex-Prime Minister Gordon Brown believes that problems of Eurozone will have an impact on British economy. As long as the Eurozone fails to cope with the Euro decline, preconditions for a new crisis in the banking system will stem in the area. At the same time Eurozone is unlikely to handle this situation without losses and therefore, neighbors will be also involved.  

Note: information released at the beginning of this week showed that Christmas sales volume in the UK are expected to be at the last year level or above, according to 54% of retailers, stated in the report of   British Retailers Consortium.
As per BRC estimations, 36% of respondents expect reduction on the index.

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