According to December’s data released by the UK’s Office for National Statistics, the UK PPI m/m declined in December 2011. The output prices for industrial products declined for the first time in 18 months.
The 0.2% monthly decline was caused by lower prices on oil products, chemicals, medicine, machinery and equipment. At the same time, the output prices for alcohol, tobacco and clothes remained unchanged. The prices on raw materials and energy carriers declined as well.
The mentioned data will probably ease the inflation pressure, thus suggesting further financial stimulation by the Bank of England in 2012.
FOREX.
GBPUSD keeps declining, thus implementing to the bearish scenario given in the outlook for Jan 12th 2012. According to the Department of Masterforex-V Trading System , the long-term low at 1.5271 is broken, which suggests a major downtrend of wave level Monthly or higher. A break below 1.5233 will continue the downtrend, thus initiating another sub-wave A(C )/C inside the Hound of the Baskervilles pattern by Elder/MF. The closest strong area of support is 1.5195/88. A break above the MF sloping channel and pivot 1.5408 will finish the mid-term downtrend.
