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Forex: GBP/USD in session highs

FXstreet.com (Barcelona) - The pound keeps pushing higher on Tuesday, hovering over 1.5320 and printing fresh session highs at the same time.

“In view of the continued weakness of the real economy and the more stable position of sterling we anticipate that the tone of the April MPC minutes due tomorrow will be dovish and the risk of further monetary stimulus this year will remain in place. This implies that any sterling gains made on this morning’s data could prove temporary and we would favour selling rallies”, recommended Jane Foley, Strategist at Rabobank.

At the moment, the cross is up 0.18% at 1.5310 facing the next hurdle at 1.5386 (high Apr.15) followed by 1.5409 (high Apr.12) and then 1.5412 (high Apr.11).
On the other hand, a breakdown of 1.5251 (low Apr.9) would aim for 1.5239 (low Apr.8) and finally 1.5225 (MA21d).

Central banks grapple political reprisal amidst mounted easing

In light of recent events, Central banks are grappling new expectations for monetary policy that may be hard to reverse as they slide deeper into the realms of fiscal policy. In particular, to lift their economies from debt crises or anemic growth, the Bank of Japan is uniting with a new government by aiming to lift inflation to 2% by 2015, and the European Central Bank stands ready to purchase bonds of stressed nations. Moreover, the Bank of England now has more room to ignore price pressures and is discussing with politicians how to ease credit further, while the Federal Reserve has extended more than $1 trillion worth of unprecedented credit to a single industry: housing.
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European markets fall, US futures set for a rebound

The German DAX 30 (-0.51%), the French CAC 40 (-0.60%), the Italian FTSE MIB (-0.31%) and the Spanish IBEX 35 (-0.43%) are down, like the rest of European equity indexes, on disappointing economic sentiment in the Eurozone and Germany. The ZEW survey showed a decline in EMU economic sentiment, from 33.4 to 23.9 in April. In Germany, economic sentiment disappointed the market, falling from 48.5 to 36.3, below the expected 42.0. Current situation wasn’t good either, dropping from 13.6 to 9.2, below 12.0 consensus.
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