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The President signs stimulus bill.

Wed, Feb 18 2009, 03:06 GMT
by James Whyte

ForexAmericas


In the news: Today U.S. stocks sell off as concerns on the financial sector continue to loom in Wall Street. This morning the manufacturing data continue to show weakness as the numbers came in at -34.7 versus a -23 forecast. Today in Denver, Colorado President Barack Obama signed the $787 billion economic stimulus bill. Oil prices continue to trade lower as energy demand decline worldwide. Crude closed down $2.58 a barren to finish the trading day at $34.93. The Dow Jones closed near November 2008 lows at 7,552.60, down 297.81. On a positive note gold closed the day near seven month highs, as funds move from oil to gold and ETFs continue buying aggressively.

Gbp/Usd: The pound is still feeling the down pressure as the U.K. economy keeps worsening. Currently we can see a downward trend line that may provide resistance at 1.4305/15. The boost in gold today may provide some relieve for the pound and the next solid support level comes in around 1.4120/30.

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