|
Posted by fxrecommends@gmail.com on January 4, 2008, 10:38 am
The British pound is still depressed by the current expectations of
further close interest rate cuts. The cable could not join any
progress of the single currency versus the greenback which had weak
consuming data and manufacturing data and the disappointed US labor
report of December which has shown and increase of the unemployment to
5% and just 18k added jobs of the non-farm-payroll to highlight the
need of further interest rate cuts and the fed's need to pay further
attention to the growth more than it does. In this same time the
interest rate in Euro zone is expected to be kept in the near term.
The cable could not hold above the 2 psychological levels. a lower top
at 2.0575 under the trend line resistance extended from 2.116 to 2.084
has put further downside pressure and the break of 2.0177 could
increase its momentum. The trend can continue and the next target is
now august low at 1.965 where the ascending channel has begun.
Also the Japanese yen can gain from this interest rate outlook
differential tightening, the mistrust in the stock market amid the
crediting problems, the slow down of the US economy persisting, the
decline of stock market, the risk aversion and the carry trade
unwinding sentiment.
The continued pressure on the British pound has accumulated on an
animus decision to cut the interest rate .25%. The market has found
the minutes release dovish and the decision was not expected to be
9:0. The minutes open the market anticipation of another cut next
month which was not discounted yet.
By God's Will, The gold rates can keep its gains as the current market
prospects of further interest rates cutting ahead and further upside
inflation risk impact resulted from the high oil prices amid the
current central banks tries to ease the global liquidity concerns by
injecting much more funds into the credit financial markets which can
add to the gold value. The actions which can revive the stability of
the crediting market but the recent signs of slowing growth can
increase the expectation of a stagflation case as the recent US high
inflation rates which reached its fastest pace in over two years last
November which can add to the precious metal value.
.
Best wishes
FX Consultant
Walid Salah El Din
Mob: +20 12 465 9143
E-Mail: mail@fx-recommends.com
http://www.fx-recommends.com
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap