The UK unemployment has reached record-breaking levels. Now its level is the highest in the last 17 years. “The Independent” reports that in a couple of months the amount of the unemployed increased by 100K. Over 1 million 697 thousand British citizens get unemployment benefits
Spenser Dale, BoE’s Chief Economist, thinks the UK economy will probably keep declining until the end of 2011. When buying assets, the Bank of England will be guided by the economic situation outside the UK.
Mr. Dale says that over the last 12 months the UK economy has almost reached stagnation. The British economy is vulnerable to inflation risks as never before. The eurozone crisis only aggravates the overall situation. That is why the UK’s central bank is constantly monitoring the situation in mainland Europe.
Mr. Dale assumes that the approved QE program should be enough to support the country’s sick economy in the near term and can help to diversify the assets of numerous funds, which invested in the UK’s public debt, in favor of such risky assets as UK stocks and corporate bonds.
FOREX.
In the meantime GBPUSD keeps rallying in the form of wave A(C )/C inside wave B(C ) of Weekly2. According to the Department of Masterforex-V Trading System , the rally may encounter resistance around 1.5849, 1.5948. In order to complete the uptrend GBPUSD well need to break below the MF sloping channel and pivot 1.5582 (as shown below):
