What is Inflation?

Videos: Get to know Inflation

Inflation is one of the most important and critical economics terms that everyone must watch closely, its importance comes from its effect on the international economy and how central banks highlight and consider it in all its monetary actions. We are here to help you with these easy videos posted by Bank of England (UK) – YouTube Channel (Full credits reserved to BOE with thanks for sharing such useful videos)

Inflation Definition

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money.

Let’s go through the following videos to know more about inflation ..

Video #1: What is Inflation?

Video #2: Why does inflation matter?

Video #3: How does the Bank manage inflation?

Video #4: History of inflation

Remember to keep sharing the useful knowledge

The Mystery of GBP/USD

GBP/USD 19th March, 2015

GBP/USD (currently at: 1.4730) is giving a clear sign of downtrend. Honestly, I can not recommend buying this pair at this level again. The BOE is not that serious about raising the interest rate this month, we will have to wait April, 2015 to see any signs of a change in BOE plan.

Yesterday, after the dovish statement of the American central bank, I can see a higher probability for strong US dollar the next 2 weeks. My technical overview can not see any serious buyers for the GBP/USD at this level without falling to 1.4334 level. I recommend buying this pair around this level and use good enough stop loss because it might fall a little bit harder before going up to test any resistance.

The GBP/USD has the following major resistance and support levels:

  • RESISTANCE: 1.5167
  • SUPPORT: 1.4334

Breaking these levels in any direction will take us higher or lower.

My Daily BUY/SELL advice (30 pips stop loss applied):

  • Sell: at 1.4730 – Take profit 1.4660 (70 pips profits)
  • Buy: at 1.4350 – Take profit 1.4400 (50 pips profits)

This review is valid during trading week: 21st-25th March, 2015