Daily Forex Reviews

GBP: British Pound is undetermined in spring

The British Pound Sterling rate is traded slightly upward at the Forex currency market on Thursday after yesterday's decline. Forex forecast: MACD indicator for the pair GBP/USD remains in the positive area; it has shifted to sideways movement, and is not giving a clear signal. Stochastic Oscillator maintains positions in the overbought zone and is moving sideways.

Forex recommendations: off the market.

Feasible event scenario at Forex :in case of breakdown at 1.5920 the pair GBP/USD will go to 1.5930 and 1.5950.If tendency to correction prevails, the pair will aim at 1.5850.

Split of opinions continues in the Bank of England: now Mr. Weale noted that the rates could be raised before the regulator will roll back stimulus measures. At the same time, Weale does not think that easy attitude to inflation for the sake of economic stimulus is a good idea. Minutes of the meeting of the Bank of England was made public in February. It did not give surprises. Thus, two of its members, Posen and Miles voted for expansion of the assets repurchase program for 75 billion pounds, while other seven monetary politicians were for expansion of the volume of QE for 50 billion. All members of MPC were unanimous in regards to interest rate. The minutes showed that some members of MPC expressed opinion that further stimulation should be discontinued. So, "hawks" are back again in the pure "dove-like" MPC.

Consumer sentiment index GFK/NOP was at the level of -29 points in February. House prices Hometrack have no changed on monthly basis (-1.4% y/y). The Pound has ignored this statistics.

According to the representative of the bank of England Mr. Tucker, as soon as recovery rate in the local economy stabilize, stimulus can be abandoned. At the same time, on-going stimulation activity can be continued only in case of thorough monitoring of inflation. He believes that presently imbalance in macro-economic policies can cause risks. Monetary policy should support domestic demand in the country.