FX Market 12th October 2010
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
Most Popular Content
- Pressure Mounts on the British Pound Following Autumn Budget
- Impact and Outlook for the U.S. Economy on Rate Cut
- Gold and Copper Markets Respond to Powell
- US Stock Market Faces Turbulence and Mixed Commodity Reactions
- Pound Holds Strong as Labour Wins with a Landslide
- Crude Oil Prices Rally as Inventory Declines and Rate Cut Hopes Emerge
- Strength in Gold and Copper Continues – But for How Long?
- Weak Payroll Data Sends Stocks Higher
Currency Articles - Nov 3, 2024 13:35 - 0 Comments
Pressure Mounts on the British Pound Following Autumn Budget
More In Currency Articles
Gold and Oil News - Aug 24, 2024 16:06 - 0 Comments
Gold and Copper Markets Respond to Powell
More In Gold and Oil News
- US Stock Market Faces Turbulence and Mixed Commodity Reactions
- Crude Oil Prices Rally as Inventory Declines and Rate Cut Hopes Emerge