Deputy Prime Minister and the British Liberal Democrat Leader Nick Clegg announced that further reductions are not acceptable without increase of taxations (primarily, for the real estate) and the official added that he was not going to sign the next round of spending cut. This is a good decision for the markets.
We do not expect any macroeconomic data from Britain today, but there will be positive data on German IFO index and Chicago and Dallas PMI. The investors are anticipating Spain to ask for a bailout.
In overall, we favor continuation of medium-term growth. In case the price fixes below the support trend line on 4H time frame (1.6204), the correction towards 1.6164 and 1.6131 is possible. Locally, the acceleration is likely towards 1.6268 and 1.6314.
