According to the recent report released by the Office for Nation Statistics (UK), the British labor power showed higher productivity in Q3 2014, Market Leader reports. On top of that, these are the highest figures in more than 3 years. According to Masterforex-V Academy this is definitely a benefit for the British economy and national currency (the British Pound).
In particular, the report says that the productivity of a working hour improved by 0,6% over the reporting period relative to the previous one. Despite being at the 3-year high at this point, the figures are still below the pre-crisis levels, which is a negative factor. The 2008 level was equal to 2%. With that said, the data look controversial. On the one hand, they are higher than any monthly figure reported over the last 3 years. But on the other hand, the improvement is insufficient relative to the pre-crisis levels, which means that the index hasn’t still recovered.
Meanwhile, it is reported that the Bank of England is not planning interest rate hikes in the near future. The central banks’ report underlines the gradual increase in the local industrial production, which (in its turn) is expected to offset the inflation pressure. At the same time, the earnings are going up at a faster pace, which gives the Bank of England an opportunity to abstain from raising interest rates.
As for the GBPUSD exchange rate, Masterforex-V Academy reports that the British Pound is still going own in value against the US Dollar. At this point, the currency pair is reported to be trading around 1.5557. The decline is more likely to continue than to reverse in he near future. Still, it is recommended to pay attention to the following levels of support 1.5482, 1.5446/38, 1.5387/73.24 while the top of the descending MF sloping channel and pivot 1.5664 are currently acting as major levels of resistance, which is confirmed by the chart below, courtesy of Masterforex-V Academy.
