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christinetank31

christinetank31


Female Number of posts : 7
Registration date : 2008-03-08

FX – GBP/USD -, Equities – FTSE 100 Index Empty
PostSubject: FX – GBP/USD -, Equities – FTSE 100 Index   FX – GBP/USD -, Equities – FTSE 100 Index EmptySat Mar 08, 2008 6:38 pm

FX – GBP/USD

The combination of a broadly weak US dollar and the Bank of England’s decision to leave rates unchanged at 5.25 percent on March 6 allowed the GBP/USD pair to surge through the 2.00 level to hit a more than two month high of 2.0215 on Friday. However, resistance from the 200 SMA at 2.0131 and the psychologically important 2.02 level has kept the pair from surging significantly higher. Upcoming economic data out of the UK could shake the pair up, as producer price figures may suggest that inflation pressures continue to build, which may force the BOE to leave rates steady at 5.25 percent again in April. As a result, if the PPI input and output numbers are stronger than expected, GBP/USD could push above resistance to ultimately target the 61.8 percent fib of the decline from 2.1162 – 1.9338 at 2.0461. On the other hand, surprisingly soft data could help weigh GBP/USD down to return to the 2.00 level.

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