GBP: British Pound is being successfully corrected
At the Forex currency on Friday the British Pound Sterling rate continues to regain from losses of this week, however only as part of corrective Forex forecast: MACD indicator for the pair GDP/USD is traded in the negative area and is rebound.
moving along the signal line, not giving a clear signal. Stochastic Oscillator is going out of the oversold zone and starts to shape a buy signal.
Forex recommendations: in case of breakdown at the level of 1.5530 the target for buying will be the levels of отметки 1.5540 and 1.5560.
Since mass flow of negative factors from Europe had dried out, the British Pound was able to regain part of the losses of this week. However, the growth is based purely on the technical correction.
The Bank of England announced earlier that average inflationary expectations in November fell to 4.1% in November versus the level of 4.2% in August. At the same time, two-year inflationary expectations were at the level of 3.4% (3.5% previously).
It became known earlier that CPI in the UK increased by 0.2% m/m (+4.8% y/y) in November, as expected. British inflation slows down its pace, however the index is still too far from the target level of the Bank of England. The data released earlier showed that retail sales BRC in the similar trading floors of the UK fell by 1.6% y/y in November against the forecast of -0.5%. It was the lowest level of the index since May this year. Activity in the British construction sector declined in November, which was demonstrated by statistics released at the end last week.
According to Markit estimates, PMI CIPS amounted to 52.3 points in November against 53.9 points earlier; however dynamics in new houses is positive, and it upward trend can be interpreted as an indication of the future stabilization in the sector. In general, the latest data from Markit looks good and does not rule out prompt recovery of the economic sectors in the future.
Earlier in December at the regular meeting, the Bank of England decided to keep interest rate unchanged at the level of 0.50% per annum, as expected. The British regulator did not bring any surprises: program of asset purchase remained unchanged and the rate is the lowest level since May 2009. Yesterday, the Bank of England announced about introduction of an additional instrument ensuring liquidity –ECTR. The objective of a new monetary mechanism is to reduce the levels of risk caused by European debt problems. With the help of this method the Bank of England can guarantee the sufficiency of the capital for commercial financial structures.
