Will Pound be able for a new High?
Review of the past week
The past market week was marked by growth of three major currency pairs. Records of the last FRS meeting exerted a pressure on Eur/Usd quotes. FRS stated that on coming December meeting it can consider QE3 cutting. Rumors about a probable introduction of negative rates coming from EuCB were also like oil in the flame. These both factors supported US dollar, whereupon EUR/USD dropped down to 1.3399. Positive PMI data in industrial sector and German IFO supported demand in Eur/Usd pair, which closed trading week at the point of 1.3556. From the one hand, positive statistics from the leading economy of Euro zone is positive for the united European currency, from another hand, the only Germany is not enough to drive European economy. Apart from the records of the FRS meetings, records of the last BoE meeting were published as well. British regulating authority stated that inflation will decline in the nearest months, whereas unemployment will on the contrary drop. It was also stated that increase in interest rates may not necessarily follow right after the target level is reached. Positive data on the balance of industrial orders by Confederation of British Industry also supported cable in pairs with Euro and USD. Gbp/Usd closed trading week at the point of 1.6225 closer and closer reaching high of 2013. Meeting of the Japanese CB did not give surprised to participants of the market. GDP decline in 3rd quarter in the rate of 1,9% per annum was marked by the JCB management as a temporary delay. Also it was stated that now it is too early to discuss the policy of leaving stimulus programs. Positive mindset of investors on Japanese stock exchanges encouraged bulls to take new highs. The week was closed by USD/JPY at the point of 101.27.
Forecast for the week 25 – 29 of November