Theleftanchor.com::Forex trading -Technical analysis daily,weekly

One of the key skills of the BoE is to keep annual inflation close to 2.0 percent. The British economy, which is still struggling to get out of the crisis phase, is currently linked to the crisis in the eurozone. The government has predicted that the ‘British economy will grow by just 0.7 percent next year, down sharply from the official estimate of 2.5 percent. The Chancellor of the Exchequer, George Osborne, proposed austerity measures in the most last week, warning that the economy will enter a new recession would break down if the euro area.
(more…)

The Bank of England, last week, decided to hold interest rates at historic low of 0.50 per cent, remained virtually unchanged for nearly three years, amid a series of economic turbulence for the United Britain for the euro area.

The BoE’s Monetary Policy Committee voted to maintain its economic stimolus, at an altitude of 275 billion pounds to help enhance the ability of banks to lend. The news, in line with market expectations, came shortly before the European Central Bank had slashed interest rates a quarter point, bringing it to 1 per cent, as a consequence of the fact that in the eurozone EU leaders seek to save the euro.
(more…)

Many of you have noticed that the price of gold bullion has fallen again, now reaching about $ 1,600 an ounce, from a high of over $ 1,900 per ounce of gold. The fall accelerated last week in response to the concern of the debt in the euro area. You might think that the crisis in the euro area would be good for gold, since the devaluation of a currency should increase the demand for gold as a store of value and can not be “defiled” by governments and central banks.

However, it seems that when markets fall, investors need more liquidity, which leads them to sell their gold reserves, which are very liquid and thus easier to sell.
(more…)

Few days ago, Moody, note rating agency, has threatened the United Kingdom to pursue a downgrade in the rating of the country, which is now in Triple A. Even if the British government has sought to blame the euro crisis of this statement, something from which I could actually depend on, Moody explained that their decision is mainly the result of poor economic prospects of the United Kingdom, which is a lower growth and a increased debt, a deficit larger than that of the past.
(more…)

The rating agency Fitch has returned to warn the U.S. its triple-A on its debt was not compatible with the load increasing, but indicated that no revision would be made until about 2013. Fitch has pointed out a negative view on the U.S. sovereign debt, but the warning is quite smooth in these circumstances, especially since S & P has already stripped to the U.S. its being superior. Of course, the crisis of the Eurozone has grabbed headlines for much of the second half of this year, but the U.S. situation should not be ignored. That said, the dollar’s status as a reserve, the low level of Treasury yields and the upcoming U.S. elections most likely cause is that the issue of debt sustainability in the U.S. not addressed in 2012. Europe must act sternly and give a warning to the U.S. ignore the debt sustainability, but in all likelihood, will not take the trouble of taking action on the matter.
(more…)

Britain and its ratings are threatened by the crisis in the euro area, Moody’s does know. The rating agency said that the Triple A of the United Kingdom is currently still not sure, but also indicated that there are new challenges to overcome to be able to maintain. The ability of Britain to absorb further economic shocks, while maintaining the stable outlook has worsened in the last year, due to weak economic growth.

The verdict is a blow to the chancellor George Osborne and his coalition. The outlook on the rating is probably also sensitive to future developments of the debt crisis in the euro area, even if the UK is not part of the monetary union.

A rating downgrade would be rather embarrassing for Osborne, but basically it will raise borrowing costs that may jeopardize the economic recovery already in trouble.
(more…)

The City believes that British banks will pass the costs of major reforms to their customers, following confirmation that the government is to legislate to reform the sector.

The British Chancellor George Osborne said yesterday of wanting to lock down deposits at high risk in order to protect the British economy, protect the British taxpayer and ensure that nothing is too big to fail.

This was the most appealing of the proposals made ​​by Sir John Vickers Independent Commission on the progress of banks in the month of September.
(more…)

The ‘Euro yesterday came to a minimum of 11 months now after the European Central Bank chief Mario Draghi, has wiped out the hopes for more bond purchases by the EU. The euro was at 1.3003 against the U.S. dollar share, before falling below the threshold of 1,300. The resistance now lies at an altitude of $ 1.3090, which would also lead to a retracement of 50 percent compared to the recent share value to 1.2944.

Dragons in the European Parliament said that the possibility of purchase of debt securities by the ECB is a temporary thing, disappointing investors who hoped the purchase of bonds, which would have maintained stable returns. Dragons also said that 2012 will be a difficult year for banks in the euro area and the region’s economic recovery will likely slow.
(more…)

Relations between Britain and France are at their lowest, after London and Paris have exchanged accusations of the state of their economies. Tensions were inflamed when the French finance minister has become the latest in a series of characters to attack the French economic management of the British government.

Francois Baroin said that the economic situation in Britain is very worrying, you prefer to be French rather than English in economic terms.

David Cameron has not spoken with Sarkozy since the French president described him as “an obstinate child.” In contrast, David Cameron has discussed the problems in the eurozone with several European leaders, including German Chancellor Angela Merkel.
(more…)

We talked in the last article of gold, one of the best investments you can make. But why is it so important? Gold is used as a hedge against currency fluctuations, particularly the U.S. dollar. If the dollar were to appreciate, the price of gold usually falls. In contrast, in those moments when the dollar is weak, the price of gold tends to rise. Basically, gold and the dollar have a pattern that is inversely proportional. For this reason, gold has always proven to be one of the most effective resources in protecting the market against the weakness of the dollar.

The ‘gold is significantly less volatile than most commodities and other indices. It tends to behave more like a coin. Assets with low volatility help reduce the overall risk of the portfolio of an investor, adding a beneficial effect on the expected returns. Gold helps to manage risk more effectively and allows you to fight back against negative events.
(more…)