UK media report that the average income in the UK declined moderately over the latest reporting period, according to the official data. Analysts can see another deterrent on the BOE's way to toughening its monetary policy in the ner future, Market Leader reports.
In particular, according to the figures published by the Office for National Statistics, the level of income (adjusted to inflation) has dropped by 1,6% since early 2014. The index has been showing a negative tendency over the last 6 years and is currently around the levels seen in 2000.
Meanwhile, the BOE's MPC members are against raising interest rates, Masterforex-V Academy reports. It turns out that the the low rate of income growth has been one of the key deterrents for the BOE's intension to start toughening its monetary policy through raising interest rates. The key interest rate is currently at the record-low level of 0,5%.
At the same time, financial markets shifted their expectations of the first interest rate hike in the UK for the second quarter of 2015.
GBPUSD Outlook
According to Masterforex-V Academy, the British Pound is currently under pressure. In particular, GBPUSD is currently showing us a negative tendency, where the US Dollar is still strong against its British counterpart even though there are signs of the completion of the downswing in the from of wave 3/C of level Daily or higher, the experts report.
A break above the local high of 1.5737 as well as the top of the descending MF sloping channel will give way to a new rally - wave A/B of level Daily or higher. If this is the case, the following levels will act as resistance: 1.8772, 1.8793, 1.5815/28. Alternatively, a break below 1.5589 will resume the downswing set for 1.5563 and 1.5449 ( as sown in the cart below, courtesy of Masterforex-V Academy).
