FX Market 12th October 2010

By Luke in Currency Articles | October 12, 2010 18:49 | Tags: , ,

Global stock markets have declined today, the USD has come off its highs and is trending back towards support. The fed is releasing its minutes from the 21st September meeting this evening at 1900. The market will be looking to these minutes to establish how the Fed intend to ease monetary policy and undergo QE2.

Most economist predict the US economic recovery to gather pace through the last quarter of 2010 and accelerate into 2011. Some analysts expect interest rates to remain at very low levels until 2015 to aid the recovery. It is probable that UK interest rates will also remain low providing inflation doesn’t get out of control.

Sterling could face volatillity with labour and inflation reports this week acting as a key focus for traders. Inflation remains stubbornly over 3% and could potentially be a worry for the UK economy. This of course is not the only worry with the upcoming austerity measures released next Wednesday and significant potential for more Quantitative Easing next month.

Support and Resistance

GBP/USD – Support 1.5670 / Resistance 1.6018
GBP/EUR – Support 1.1296 / Resistance 1.2015

UK Economic Releases

FRA – HICP Final (September) 0630
UK – Average Weekly Earnings (August) 0930
UK – Claimant Count (September) 0930
UK – ILO Unemployment 0930
EU-16 – Industrial Production (August)
US – Export / Import Prices (September)

Luke Zorab
Torfx Currency Dealer
(01736) 335285

About Luke

Comments are closed.

Most Popular Content

Currency Articles - May 22, 2019 15:21 - 0 Comments

The Pound is in Freefall – When Will It Stop?

More In Currency Articles

Gold and Oil News - Aug 1, 2021 14:10 - 0 Comments

Inflation Worries Prevail As Gold Prices Look Higher

More In Gold and Oil News

Shares and Markets - May 13, 2019 11:15 - 0 Comments

FTSE Weaker in Q2 But Looking For Support

More In Shares and Markets