FOREXYARD: Forex News Blog | |
- British Pound Expecting Downturn from Bearish Data
- Has the Pound’s Bullish Trend Come to an End?
- Dollar and Crude Oil Up Front
| British Pound Expecting Downturn from Bearish Data Posted: 04 May 2011 08:30 AM PDT
Britain experienced another bearish trading session today following a series of reports which failed to meet expectations. The British economy has been struggling in the manufacturing and industrial sectors, which now appears to be spilling over into other aspects of economic well being. Published today were several interconnected data sets. The first was the Nationwide House Price Index (HPI) which showed the housing market experiencing a pricing downturn of about 0.2% this past month. The news had pulled down on the pound sterling (GBP) initially but not heavily. Shortly after the HPI data release, Britain published its Construction PMI which concurred with the notion expressed in the HPI figures; mainly that the housing market was in a slump. Falling far short of expectations, the HPI and PMI figures have so far pulled down moderately on the value of the British pound. But the bad news didn't end there. Many investors keeping an eye on Britain were expecting today's net lending report to show modest growth in private loans. The actual figure published today, however, came well below expectations. If you couple this information with the sluggish growth in the M4 money supply, it appears possible to add the housing and financial systems to the list of economic sectors faltering in the British economy. This spells bearishness for the GBP. |
| Has the Pound’s Bullish Trend Come to an End? Posted: 04 Aug 2009 10:49 AM PDT
As I stated in my previous article, the GBP moves a lot on the release of vital economic data from the leading economies, including the U.S. and Britain. Truth be said, U.S. data has been the driving force impacting the forex market recently. The constant release of positive figures from Britain, such as today’s Construction PMI seems to have a positive affect on the GBP. There is a reasonable possibility that the quantitative easing by the Bank of England (BoE) could have negative affects in the short-medium term. With regards to the GBP/USD, this cross may be unaffected due to the U.S. printing money at a greater level than Britain. The EUR/GBP cross may go higher in the coming week due to a number of reasons. The escalation of quantitative easing by the BoE and the possible bullish correction of the pair may take its toll. Furthermore, since the start of the recession, the European Central Bank (ECB) has been reluctant to mass print the EUR, unlike Britain and the U.S. This may lead to the EUR/GBP pair to go bullish for the next week or so. It seems that 2 of the most attractive crosses for you forex traders this week seem to be the GBP/USD and EUR/GBP. Therefore, it’s recommended that you open large positions in these pairs, as there are currently great opportunities to make big money, as the global economic recession eases. In addition, we have a wide range of accounts for you to choose from, in order to suit your trading needs. EUR/GBP technical analysis ·The chart below is the daily chart for GBP/JPY by ForexYard. ·The technical indicators used are the Slow Stochastic, RSI and William Percent Range. ·Point 1: William Percent Range Signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure. ·Point 2: The Slow Stochastic indicates an impending bearish cross, signaling that the next move may be in a downward direction. ·Point 3: The Relative Strength Index (RSI) also supports the downward direction.
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| Posted: 04 Aug 2009 09:49 AM PDT
Monday’s trading saw the Dollar fall against nearly all of its major currency pairs. On the other hand, Crude Oil rose to its highest level since the beginning of July. The Dollar slumped vs. the key currencies, including the GBP, EUR and Canadian Dollar yesterday. This was largely owed to the publication of optimistic U.S. manufacturing and construction data. Furthermore, the greenback was sold-off, as risk appetite was extremely high throughout yesterday’s trading. Crude Oil prices rose to over $72 a barrel yesterday, before closing at $71.25. This came about due to the dramatic rise in global optimism, increased risk appetite, and a global rally in stocks and commodities. The decline of the USD on Monday helped push-up the price of Crude, which itself is priced in U.S. Dollars. 08:30 GMT: GBP – Construction PMI Measures an index based on a survey of purchasing managers in the British construction industry. It is a leading indicator of economic health, and one of the primary measurements of economic activity. A figure higher than forecast is usually good for the GBP and a pessimistic result usually leads to a bearish GBP. 14:00 GMT: USD – Pending Home Sales Measures the amount of homes that are under contract to be sold, but still pending the closing contract, excluding new construction. It’s the broadest measure of economic activity and the primary gauge of the economy’s health. The US Pending Home Sales usually has a big impact on market sentiment, and could lead to very high market volatility. |
As you have seen as of late, the situation with the British Pound in the forex market changes constantly. 
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