FXstreet.com

Daily FX Commentary

This report has been deactivated

7

0

Daily FX Commentary

Mon, Dec 1 2008, 11:33 GMT

Investica Ltd


Sterling under renewed pressure

Sterling found support near 0.84 against the Euro on Friday and took advantage of general Euro weakness with gains to near 0.8250 in US trading. The UK currency was unable to make a fresh challenge on the 1.55 resistance level against the dollar.

The latest UK CBI distributive survey recorded a renewed deterioration with a reading of -46 for November from -27 the previous month while retailers were generally pessimistic over near-term prospects. The evidence will reinforce fears over the consumer spending outlook during the crucial December period and the threat of further company failures.

A further cut of at least 0.50% is certainly priced in which should limit Sterling selling, especially with the prospect of further US and Euro-zone cuts, but there is likely to be renewed speculation over a more aggressive MPC stance this week.

The UK data remained depressed with the PMI manufacturing index weakening to 34.4 for November from 40.7 previously. Consumer lending was also depressed for the month, maintaining pressure for a further sharp cut in interest rates and the data pushed Sterling back towards 1.50 against the dollar as risk appetite faded again.


Archive

Investica Ltd http://www.investica.co.uk | tim.clayton@investica.co.uk

Legal disclaimer and risk disclosure

Investica's market analysis is not investment advice and must not be taken as recommending particular market positions. Investica can take no responsibility for any actions taken by investors.

Related reports

FX View - Headline unemployment rate creates dollar shocker by Interactive Brokers LLC
Fri, Nov 6 2009, 18:41 GMT

Forex Daily Overview - USD mixed, unemployment rises to 10.2% by Easy Forex
Fri, Nov 6 2009, 18:31 GMT

Weekly Market Commentary - Fed, BOE and ECB kept rates on hold by Mizuho Corporate Bank
Fri, Nov 6 2009, 15:45 GMT

Forex Daily Analysis - USDJPY is moving towards support level at 89.55 by Investija.com
Fri, Nov 6 2009, 14:35 GMT

Forex Technical Report - U.S. Markets Brace for Jobs Data by ForexHound.com
Fri, Nov 6 2009, 13:29 GMT

boe, interestrate, eurgbp, gbpusd

View All

Related content

CURRENCIES: Dollar Dips Vs. Yen As Jobs Data Have Fed On Hold
Dow Jones | Fri, Nov 6 2009, 22:14 GMT

Forex: GBP/USD: Cable hovering around 1.6600
FXstreet.com | Fri, Nov 6 2009, 20:34 GMT

CURRENCIES: Dollar Dips Vs Yen As Jobs Data Has Fed On Hold
Dow Jones | Fri, Nov 6 2009, 20:25 GMT

CURRENCIES: Dollar Index Dips After Job Data Keeps Fed On Hold
Dow Jones | Fri, Nov 6 2009, 17:36 GMT

Forex: GBP/USD fails to hold above 1.6600
FXstreet.com | Fri, Nov 6 2009, 16:29 GMT

boe, interestrate, eurgbp, gbpusd

View All

Interested in forex trading? forex brokerage firms!


MG Financial Group
Contact the broker/FDM
Open a demo account
FX Solutions LLC
Contact the broker/FDM
Open a demo account
City Credit Capital (UK) Limited
Contact the broker/FDM
Open a demo account
Forex Club Financial Company
Contact the broker/FDM
Open a demo account
MIG INVESTMENTS SA
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.