{"id":63572,"date":"2014-11-12T07:21:22","date_gmt":"2014-11-12T12:21:22","guid":{"rendered":"http:\/\/countingpips.com\/?p=63572"},"modified":"2014-11-12T07:31:08","modified_gmt":"2014-11-12T12:31:08","slug":"sterling-drops-following-revised-boe-report","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/11\/sterling-drops-following-revised-boe-report\/","title":{"rendered":"Sterling Drops Following Revised BOE Report"},"content":{"rendered":"
November 12, 2014<\/div>
\r\n<\/div><\/div>

Article by ForexTime<\/a><\/p>\n

Cable dropped following the Bank of England Inflation Report, which trimmed both GDP and inflation forecasts, noting that CPI is likely to fall below 1% within six months. The news was the catalyst that saw sterling give back gains seen on a generally good employment report, with the October claimant count dipping by 20.4k, which was more than expected. Cable lost nearly 1 big figure in making a low of 1.5850, which swung last Friday\u2019s 13-month low at 1.5790 back into range.<\/p>\n

The BoE<\/span> trimmed GDP and CPI forecasts in its latest Quarterly Inflation Report. The GDP projection for 2015 was reduced to 2.9% from the 3.1% projected in the August Report, and to 2.6% in 2016, down from 2.7%. Consumer Inflation is now seen at 1.4% year over year in 2015, down from the 1.7% projected in the August Report. The BoE reported that CPI<\/span> is likely to fall below 1% within six months, before returning to 2% target by the end of the three-year forecast horizon.<\/p>\n

The downward revisions reflect the weaker global outlook and a softer profile for private sector domestic demand, while weaker food and other commodity prices and year over year appreciation in the trade-weighted value of sterling have weighed on inflation. The BoE<\/span> notes downside risks from the Eurozone.<\/p>\n

The technical outlook shows a consolidative<\/span> pattern that is in a slow downtrend<\/span>.\u00a0 Momentum has turned negative as the MACD (moving average convergence divergence) index generated a sell signal.\u00a0 This occurs when the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.\u00a0 The RSI (relative strength index) edged lower with price action, printing a reading of 37, which is on the lower end of the neutral range.<\/p>\n

\"gbp-111214\"<\/a><\/p>\n

 <\/p>\n

\n

\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime Cable dropped following the Bank of England Inflation Report, which trimmed both GDP and inflation forecasts, noting that CPI is likely to fall below 1% within six months. The news was the catalyst that saw sterling give back gains seen on a generally good employment report, with the October claimant count dipping […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-63572","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/63572","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=63572"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/63572\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=63572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=63572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=63572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}