Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Currencies  >  British Pound / US Dollar (GBP/USD)       

Analysis summary4-Traders Strategies

The Bank of England is going to go to war

share with twitter share with LinkedIn share with facebook
share via e-mail
02/04/2013 | 02:33pm

While the devaluation race is in full swing in the United States as in Japan, the Bank of England (BoE) could print money due to oppressive risk of a third recession since 2008.

Although growth resumed in the third quarter of 2012, mainly due to a series of extraordinary events, the United Kingdom remained in the cross hairs of investors after the publication of a negative series of statistics in early year. Thus, the activity in the dominant services sector contracted in December for the first time in two years and manufacturing showed an unexpected drop. Figures herald a new setback on January 25 as the country reported a further contraction of GDP in the fourth quarter of last year (-0.3%).

Therefore, if the BoE opted again in January for a status quo of its program of quantitative easing to 375 billion pounds spent in November, British bankers could quickly fall in with David Miles, one member of the committee to require new injections during the last three meetings of the institution. On the other hand Mark Carney, who will take the reins of the monetary authority on July 1, has already said he would put growth at the heart of its strategy for employment, leaving prices fallen despite an inflation rate that stabilizes above the target level of 2%.

Finally, in the longer term, the announcement by David Cameron to hold a referendum on keeping the United Kingdom in the European Union, in case of Conservative victory in 2015, contributes to punish British pound. The project is indeed a source of uncertainty about future investment in Great-Britain.

Graphically, the brief jump of Sterling, drawn up by the Euro and the calming situation in Europe, put GBP above USD 1.58 to contact their 20-day moving average. The time seems appropriate to anticipate a resumption of downward pressure that could cause a return of the British currency towards USD 1.5665 and 1.5483.

Mathieu Burbau
© Zonebourse.com 2013
share with twitter share with LinkedIn share with facebook
share via e-mail

Disclaimer: The information, charts, data, views, or comments provided by SURPERFORMANCE SAS are intended for investors who have the necessary knowledge and experience to understand and appreciate the information contained within. These items are disseminated for personal reference only. They do not constitute an offer or solicitation to buy or sell financial products or services, nor an investment advice.
The use of the information disseminated takes place under the investor's sole responsibility, without recourse against SURPERFORMANCE SAS. SURPERFORMANCE SAS will not be liable, whether in contract, in tort, under any warranty, for errors, omissions, improper investments, or adverse evolution of markets.

Duration : Period : Day
British Pound / US Dollar  Technical Analysis Chart | 4-Traders
Duration : Period : Week
British Pound / US Dollar  Technical Analysis Chart | 4-Traders