Wednesday, June 8, 2011

GBP/USD Performance Chart as at 1:00 p.m. Singapore time, 8/06/11

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HISTORICAL DETAILS 
% Change
1 Wk 0.51%
1 Month 0.09
3 Months 2.22%
6 Months 3.88%
1 Year 13.47%
 
52 WEEK
High 1.6747
Low 1.4347
 
BLOOMBERG MEDIAN FORECASTS
Q2 2011 1.63
Q3 2011 1.62
Q4 2011 1.63
Q1 2012 1.62
 
DAILY DETAIL
The sterling was well supported in overnight trade, despite continuing weakness in UK economic figures. Following the weaker-than-expected BRC retail sales numbers, the latest reading into the housing market had the Halifax Housing Index showing 0.1% growth, well below estimates of 0.4%. This added to mounting evidence that the British recovery was losing momentum, and that keeping interest rates was crucial in helping to support the economy through this soft patch. With the BoE due to meet on interest rates tomorrow night, one would have predicted selling pressure on the cable, as the market factored out any possible tightening bias. However, this wasn’t to be as the cautionary comments from Federal Reserve Chairman Ben Bernanke saw the US dollar sharply lower, supporting sterling. The major rallied from a low of 1.6323 to a high of 1.6470; it’s currently trading around the 1.6414 mark. From a technical perspective, the GBP/USD looks to be stuck in a 1.63 – 1.65 range, as participants grapple with weak economic data and a falling US dollar. With little on the economic data front in the coming hours, the sterling is likely to be driven by underlying risk appetite. Ben Potter, Australia
 
 

 

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