London Calling
Fundamentals
The Bank of England left interest rates unchanged at 0.5% as the continuing drop in crude oil prices reduced inflation fears. The U.K.?s annual rate of inflation dropped precipitously to 0.5% in December. The Bank of England is targeting an annual inflation of rate of 2.0%. The U.K. economy continues to outperform European peers with an expected growth rate of 2.6% for 2015. The quantitative easing program by the European Central Bank is causing the Euro to fall against the Pound, potentially hurting U.K. exports. A bigger issue is the referendum on the U.K.?s continued participation in the European Union. Prime Minister David Cameron is attempting to push for reforms in the E.U. and spent last week negotiating in Poland and Romania.
Technical Notes? -? View Today’s Chart
Turning to the 3 month continuation chart, we see that the British Pound is attempting to break though the 50 day SMA, which is providing resistance. The previous level of resistance was found at the 20 day SMA and is now providing support. The level near 1.545 provides the next level of resistance. 14 day RSI is a neutral 54.35
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