Forum > View Topic
by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 3054
Posted: Feb 22, 2010 5:00
Comments: 3054
Forum Topic:
GBP
Discuss GBP
not sure about your 1.70.....
assuming 6425 is taken out... 6550 looks very likely.... need a weekly close above that level for any chance of moving to 1.70.... above 6550... still have to cope with 6900....
well if you're really LUCKY.... it might happen...:) but definitely not in few days....
gl/gt
FALLING GBP TURNS to UK CPI for possible support following the IMF downgrade and continuously dismal RICS survey. The Bank of Canada is expected to hold, while Portugal hosts the IMF rescuers. UK MAR CPI seen at 4.4% y/y, a conservative figure considering the recent surge in oil prices. A figure above 4.5% could well increase the odds for a May rate hike. UK Feb trade balance expected to have deteriorated from January's 7bn to 8bn. Key GBPUSD resistance stand between the recent highs at 1.6430 and the 2010 highs at 1.6460, while against the single currency there appears to be some significant resistance between 0.8850/60. Cable support at 1.6270 could be broken on downside surprise.
KM - AshrafLaidi.com staff
Ashraf
ASIA PACIFIC PREVIEW:
APRIL UK RICS survey on house prices remained unchanged at -23%, showing similar pace of declines, while the BRC Retail Sales monitor fell 3.5% y/y from -0.4%. GBP EXTENDS LOSSES to $1.63350, while EURGBP looking to break 0.8850 barrier for the next key medium term target at 0.9930.
From AB - AshrafLaidi.com Staff
Ashraf
Back to a tamer calendar in the way of economic data releases today with UK PPI for March expected to invite further debate about the Bank of Englands decision to hold rates yesterday. Factory gate prices have CONTINUALLY LED the official inflation numbers which are due out next week, therefore, these are expected to be no different and are expected to remain elevated. Year on Year input prices are expected to come in around 13.2%, down from prior months 14.6% while core output prices are seen around 3%.
GBP regains $1.6350s foundation after bouncing off 1.6260 support, now eyeing the 1.6460s highs from last year as the next key objective. EURGBP has yet to surpass 0.8850. EURUSD looking to regain $1.44 despite Trichets coyness on whether or not there would be plans to raise rates again. Keep an eye on 1.4580, which is the high from last year.
JOIN ASHRAF IN LONDON TODAY & TOMORROW at the Traders Expo, where he will give his latest insights about FX, falling GOLD relative to energy prices and the latest on Ezone whether it matters. MORE DETAIL HERE:http://bit.ly/ ejFQxz
By KM - AshrafLaidi.com Staff.