British Pound Rates

FX majors have recovered well having closed in London yesterday pretty much at their lows. The recovery was in line with the recovery in US equities; down 1.5% at one stage, US stocks managed to close down ~0.8%. Reports of a potential modest and temporary tax on European banks as a compromise solution and IBM reporting after the close with profits beating expectations helped to underpin sentiment modestly (S&P futures up 0.25%). Nonetheless, FX majors remain within tight ranges and the bigger picture is still one of broader risk reduction amid ongoing European and US debt concerns- the VIX is back above 20%, precious metals are forging higher (Gold above $1600/oz) and CHF is hitting successive record highs. Day ahead: The main highlight will be the BoC rate decision. Before then, the German ZEW is expected to moderate from 87.6 and -9.0 to 85 and -12.5 for the current and economic sub indices. In the US, housing starts (cons: 575,000) and...

Euro Initial support is seen at 1.4255 (May 9 low) followed by 1.4205 (Apr 19 low). Initial resistance is located at 1.4500 (Big Figure Resistance) followed by 1.4756 (61.8% retrace of 1.4940-1.4457) Yen Initial support is at 80.00 (Big Figure support) followed by 78.83 (Mar 18 low). Initial resistance is at 81.28 (May 3 low) followed by 81.69 (May 2 High). Cable Initial support is at 1.6308 (Apr 20 low ) followed by 1.6246 ( low). Initial resistance is at 1.6544 (May 5 high) followed by 1.6661 (May 3 high). Aussie Initial support is located at 1.0579 (May 6 low) followed by the 1.0443 (Apr 19 low). Initial resistance is at 1.0878 (May 4 high) followed by 1.0953 (May 3 high). Gold Initial support is seen at 1500 (Big Figure support) followed by 1471 (May 6 low). Initial resistance is at 1533 (May 22 high) followed by 1551 (May 3 high). Oil Initial support is at 100.00 (Intraday Support) followed by 97.00 (Intraday Support). Initial resistance is...

  The Trend Trader for Forex For Trading On Tuesday, February 22, 2011 THE BIG SIX Close % Change 3x1 7x5 Minor Trend Major Trend Trend Reading AUDUSD - Aust Dollar / US Dollar 1.0143 + 0.25 1.0077 1.0081 Bullish EURUSD - Euro / US Dollar 1.3692 + 0.62 1.3592 1.3611 Bullish GBPUSD - British Pound / US Dollar 1.6252 + 0.49 1.6151 1.6165 Bullish USDCAD - US Dollar / Canadian Dollar 0.9864 + 0.21 0.9852 0.9860 Bullish USDCHF - US Dollar / Swiss Franc 0.9444 − 0.54 0.9542 0.9541 Bearish USDJPY - US Dollar / Japanese Yen 83.166 − 0.16 83.449 83.388 Bearish ALL OTHERS AUDCAD - Aust Dollar / Canadian Dollar 1.0007 + 0.47 0.9929 0.9953 Bullish AUDCHF - Aust Dollar / Swiss Franc 0.9579 − 0.29 0.9609 0.9645 Bearish AUDJPY - Aust Dollar / Japanese Yen 84.349 + 0.09 84.079 84.029 Bullish AUDNZD - Aust Dollar / New Zealand $ 1.3316 − 0.09 1.3295 1.3284 Bullish CADCHF - Canadian Dollar / Swiss Franc 0.9567 − 0.79 0.9683 0.9670 Bearish CADJPY - Canadian Dollar / Japanese Yen 84.257 − 0.40 84.665 84.511 Bearish CHFJPY - Swiss Franc / Japanese Yen 88.004 + 0.34 87.434 87.141 Bullish EURAUD - Euro / Australian Dollar 1.3493 + 0.34 1.3493 1.3499 Bearish EURCAD - Euro / Canadian Dollar 1.3505 + 0.82 1.3389 1.3429 Bullish EURCHF - Euro / Swiss Franc 1.2932 + 0.08 1.2976 1.3009 Bearish EURDKK - Euro / Danish Krone 7.4547 + 0.01 7.4552 7.4553 Bearish EURGBP - Euro / British Pound 0.8422 + 0.11 0.8412 0.8412 Bullish EURJPY - Euro / Japanese Yen 113.864 + 0.45 113.426 113.286 Bullish EURNOK - Euro / Norwegian Krone 7.7560 − 0.04 7.7756 7.8166 Bearish EURNZD - Euro / New Zealand Dollar 1.7966 + 0.22 1.7942 1.7927 Bullish EURSEK - Euro / Swedish Krona 8.7443 +...

  The Trend Trader for Forex For Trading On Thursday, February 17, 2011 THE BIG SIX Close % Change 3x1 7x5 Minor Trend Major Trend Trend Reading AUDUSD - Aust Dollar / US Dollar 1.0030 + 0.67 1.0010 1.0056 Neutral EURUSD - Euro / US Dollar 1.3568 + 0.61 1.3510 1.3599 Neutral GBPUSD - British Pound / US Dollar 1.6093 − 0.20 1.6073 1.6050 Bullish USDCAD - US Dollar / Canadian Dollar 0.9847 − 0.50 0.9876 0.9905 Bearish USDCHF - US Dollar / Swiss Franc 0.9592 − 0.79 0.9674 0.9676 Bearish USDJPY - US Dollar / Japanese Yen 83.671 − 0.11 83.547 82.953 Bullish ALL OTHERS AUDCAD - Aust Dollar / Canadian Dollar 0.9877 + 0.16 0.9884 0.9967 Bearish AUDCHF - Aust Dollar / Swiss Franc 0.9621 − 0.12 0.9681 0.9727 Bearish AUDJPY - Aust Dollar / Japanese Yen 83.917 + 0.56 83.620 83.419 Bullish AUDNZD - Aust Dollar / New Zealand $ 1.3288 + 0.32 1.3256 1.3137 Bullish CADCHF - Canadian Dollar / Swiss Franc 0.9738 − 0.30 0.9796 0.9780 Bearish CADJPY - Canadian Dollar / Japanese Yen 84.949 + 0.40 84.595 83.808 Bullish CHFJPY - Swiss Franc / Japanese Yen 87.198 + 0.69 86.359 85.735 Bullish EURAUD - Euro / Australian Dollar 1.3522 − 0.09 1.3504 1.3485 Bullish EURCAD - Euro / Canadian Dollar 1.3361 + 0.11 1.3337 1.3461 Neutral EURCHF - Euro / Swiss Franc 1.3016 − 0.19 1.3074 1.3108 Bearish EURDKK - Euro / Danish Krone 7.4558 0.00 7.4560 7.4557 Neutral EURGBP - Euro / British Pound 0.8429 + 0.80 0.8407 0.8459 Neutral EURJPY - Euro / Japanese Yen 113.526 + 0.50 112.902 112.585 Bullish EURNOK - Euro / Norwegian Krone 7.7652 − 1.10 7.8480 7.9022 Bearish EURNZD - Euro / New Zealand Dollar 1.7972 + 0.23 1.7902 1.7744 Bullish EURSEK - Euro / Swedish Krona 8.7054 − 0.37 8.7424 8.7948 Bearish GBPAUD...

The dollar fell today against majors on believes some Asian countries might witness a rise in their currencies’ values if the central banks decide to raise rates in order to mitigate inflation, especially the Chinese central bank. On the other hand, all markets will shift their attention today towards the South Korean capital, Seoul, where the G20 meeting will take place, especially since the US and Canadian markets are absent for holiday, while Europe will lack any important fundamentals. The euro was almost flat during today’s Asian session against the dollar yet with an upside bias, trading around the level 1.3770, recording the highest at 1.3820 and the lowest at 1.3756. On the other hand, the pair faced a support at 1.3720 that contributed into ending the downside movement of the pair. The daily momentum indicators show the pair in an oversold area, while the four hours indicators show the pair heading towards an overbought area, which limited the pair’s movement. The...

The main moving sentiment in the market this week is the weekend G20 meeting and the new pledges from member nations which all sided to the disadvantage of the dollar. The Group of 20 finance leaders in South Korea pledged to avoid intervening in the market to weaken their currencies to gain trade advantages, which gave the dollar the bearish bias on expectations in the market that nations will refrain from unilaterally selling their currencies versus the dollar at least into next month when the nations’ leaders meet. This sentiment worked against the dollar and weakened it further adding to the quantitative easing prospects and weakening recovery outlook. The pledges rather calmed markets and eased the jitters seen recently over prospects for a new round of currency wars, and adding to that it supported expectations for China to move faster on the yuan revaluation which will also be good support for global trade and the recovery. The dollar was moving bearishly since this...