Forex Technical Report
6
5
Fundamentals and Technicals Support Rally for British Pounds
Fri, Nov 28 2008, 15:34 GMT
by Forex Hound Analysis Team
This week the main trend in the British Pounds turned up for the first time since August 5. This is a sign that investor confidence is returning to the currency. On the futures side, the Commodity Futures Trading Commission Commitment of Trades Report is also showing signs that large trader interest is returning to the long side of this market.
Besides the news that consumer confidence in the U.K. fell less than forecast, gains in the stock market this week because of increased demand for higher yielding assets has helped the British Pound to one of its best weekly percentage gains in almost eight years. In addition to the lowering of the Value Added Tax this week in an effort to stimulate the U.K. economy, traders are also anticipating another rate cut by the Bank of England of up to 100 basis points at its next meeting on December 4. Investors are beginning to believe that the moves by the Bank of England have the British economy on a pace to accelerate its recovery from the recession gripping the country. The main factor holding the British Pound back from a substantial rally is the inability of the recent actions by the Bank of England to stimulate lending among the banks. The commitment to the long side by the GBP USD bulls is a sign that investors are anticipating a loosening in the credit markets. Look for the Bank of England’s actions to provide support to this pair while waiting for looser lending practices to trigger a breakout to the upside.
Published on Fri, Nov 28 2008, 15:39 GMT
Archive
- Futures Technical & Fundamental Analysis Recap
Published On Fri, Jul 3 2009, 07:05 GMT - Forex Technical & Fundamental Analysis Recap
Published On Fri, Jul 3 2009, 06:59 GMT - Futures Market Technical and Fundamental Recap
Published On Thu, Jul 2 2009, 06:37 GMT - Forex Market Technical and Fundamental Recap
Published On Thu, Jul 2 2009, 06:32 GMT - Forex Market Technical and Fundamental Recap
Published On Wed, Jul 1 2009, 12:04 GMT
ForexHound.com
| #36548, PO Box 4668. New York - NY 10163-4668
http://www.forexhound.com/ | info@forexhound.com
Legal disclaimer and risk disclosure
Trading foreign exchange on the 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 should not invest money that you cannot afford to lose.Related reports
Weekly Market Commentary - Libor and Official Interest rates are at their narrowest by Mizuho Corporate Bank
Fri, Jul 3 2009, 14:33 GMT
Daily Market Report - Risk aversion was the main theme of yesterday's trading session by Wachovia
Fri, Jul 3 2009, 12:25 GMT
FX Thoughts for the Day by Kshitij Consultancy Service
Fri, Jul 3 2009, 12:23 GMT
Asia Market Update - Most Asian equities indices track the US session declines as nonfarm payrolls data disappoints by TradeTheNews.com
Fri, Jul 3 2009, 11:55 GMT
Daily Analysis - The Dollar gains as the markets tumble and investors seek a safe haven by Finotec Group Inc.
Fri, Jul 3 2009, 11:47 GMT
Related content
European Markets mixed, EUR rises and GBP lower
FXstreet.com | Fri, Jul 3 2009, 14:38 GMT
CURRENCIES: Dollar Edges Higher In Thin Trade Ahead Of Holiday
Dow Jones | Fri, Jul 3 2009, 11:46 GMT
Forex: GBP/USD falls further to test 1.6300
FXstreet.com | Fri, Jul 3 2009, 11:20 GMT
2nd UPDATE: UK Service Sector Grows, End Of Recession Nears
Dow Jones | Fri, Jul 3 2009, 10:15 GMT
UPDATE: UK Service Sector Grows, But Slows In June
Dow Jones | Fri, Jul 3 2009, 09:43 GMT
Interested in forex trading? forex brokerage firms!
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program
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.