30 June 2012 analyst 02: 49 GMT
fundamental forecasts for the pound sterling: Rally
The pound sterling has reduced the decline of this month that the EU Summit survived the reactions of the market, but the sterling may struggle to hold his ground next week as the market players see the Bank of England is taking additional steps to protect the UK economy. While the BoE is widely expected to maintain the reference to 0.50% interest rate, there is growing speculation that the Central Bank embark in more quantitative expansion as the sovereign debt crisis continues to hinder the fundamental Outlook for the region.
A Bloomberg News poll shows 39 of 41 surveyed economists see the monetary policy Committee increase the ease of purchase far beyond the target of 325 GBP, and the Central Bank can continue to do its cycle of relaxation in the second half of the year Governor Mervyn King is cautious over more to the region. Indeed, Mr King sounded pessimistic on the economy of his testimony before the Council of the Treasury Committee, earlier this week, and it seems that the head of the Central Bank attempts to of swaying the MPC to expand the balance sheet more far to combat the risk of loss to the U.K. economy. The United Kingdom is in a technical recession, fears of a prolonged economic slowdown may push additional votes for ease, but we see an another 5-4 split in July as the underlying growth of price stickiness raises the threat of inflation. Although the BoE curbed its forecasts for growth and inflation, we have seen the superior price containing consumer heart tick in may, with annualized sales growth of 2.2%, and the majority can continue to approve an approach to wait and see the fundamental Outlook for Britain remain confused with great uncertainty.
Although the GBPUSD had an impressive rally in July, the couple seems to have carved a high low in June, and the lack of dynamism of stand on the tracing of Fibonacci 61.8% of 2009 low to high around 1.5690 - 1.5700 can produce a correction in the short term before the decision of BoE rate as market participants weigh prospects for monetary policy. However, a program for the purchase of the assets of the BoE increase could force a sharp decline in the exchange rate, and we see the GBPUSD allow execution of the other 50.0% Fib (1.5270) should the Central Bank strike a tone very moderate for the area. -DS
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30 June 2012 02: 49 GMT
fundamental forecasts for the pound sterling: RallyThe pound sterling has reduced the decline of this month that the EU Summit survived the reactions of the market, but the sterling may struggle to hold his ground next week as the market players see the Bank of England is taking additional steps to protect the UK economy. While the BoE is widely expected to maintain the reference to 0.50% interest rate, there is growing speculation that the Central Bank embark in more quantitative expansion as the sovereign debt crisis continues to hinder the fundamental Outlook for the region.
A Bloomberg News poll shows 39 of 41 surveyed economists see the monetary policy Committee increase the ease of purchase far beyond the target of 325 GBP, and the Central Bank can continue to do its cycle of relaxation in the second half of the year Governor Mervyn King is cautious over more to the region. Indeed, Mr King sounded pessimistic on the economy of his testimony before the Council of the Treasury Committee, earlier this week, and it seems that the head of the Central Bank attempts to of swaying the MPC to expand the balance sheet more far to combat the risk of loss to the U.K. economy. The United Kingdom is in a technical recession, fears of a prolonged economic slowdown may push additional votes for ease, but we see an another 5-4 split in July as the underlying growth of price stickiness raises the threat of inflation. Although the BoE curbed its forecasts for growth and inflation, we have seen the superior price containing consumer heart tick in may, with annualized sales growth of 2.2%, and the majority can continue to approve an approach to wait and see the fundamental Outlook for Britain remain confused with great uncertainty.
Although the GBPUSD had an impressive rally in July, the couple seems to have carved a high low in June, and the lack of dynamism of stand on the tracing of Fibonacci 61.8% of 2009 low to high around 1.5690 - 1.5700 can produce a correction in the short term before the decision of BoE rate as market participants weigh prospects for monetary policy. However, a program for the purchase of the assets of the BoE increase could force a sharp decline in the exchange rate, and we see the GBPUSD allow execution of the other 50.0% Fib (1.5270) should the Central Bank strike a tone very moderate for the area. -DS
DailyFX provides news forex and technical analysis on trends affecting the global currency.
Learn forex trading with a free account for practice and exchange of FXCM charts.
30 June 2012 02: 49 GMT
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