FXstreet.com

Daily FX Commentary

This report has been deactivated

1

0

Daily FX Commentary

Mon, Mar 9 2009, 14:19 GMT

Investica Ltd


Sterling under pressure

Sterling found support below 1.42 against the dollar in Europe on Friday and pushed to a high just above 1.43 following the US data. The UK currency was unable to sustain the gains and weakened sharply back to 1.41 later in US trading while Sterling also dipped to test levels near 0.90 against the Euro.

Following sharp losses on Thursday, the UK stock market attempted to rally on Friday, but gains stalled quickly which limited Sterling support, especially as there was renewed downward pressure on the financial sector.  There were also underlying fears over the impact of quantitative easing on the medium-term currency outlook with reduced yield support for gilts.

The Lloyds banking group confirmed that the government would have a 65% stake following the new loan guarantee programme.  The UK stock market was subjected to further pressure on Monday with financials again under pressure following the Lloyds announcement with the UK index at fresh 6-year lows.

Sterling initially held close to 1.41 on Monday as risk appetite remained very fragile and then weakened sharply again to test levels below 1.40 as yields on government bonds continued to decline with lows below 1.39.

Published on  Mon, Mar 9 2009, 14:20 GMT


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.


Interested in forex trading? forex brokerage firms!


FOREX.com
Contact the broker/FDM
Open a demo account
MG Financial Group
Contact the broker/FDM
Open a demo account
Saxo Bank A/S
Contact the broker/FDM
Open a demo account		CitiFX Pro
Contact the broker/FDM
Open a demo account		Alpari (US), LLC
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.