US ($) Currency Thread 1 (closed - use thread 2)

inspector_monkfish

07:53 25Mar09 GBP/USD: Elicits Support pre-1.4622, BoE & Number 10 "At War"

London, March 25. Cable elicited support just shy of 1.4622 following its early European break below the base of today"s 1.4636-1.4720 Asian session range. 1.4622 was yesterday"s early Europe pullback low from a late Asian session high of 1.4738.

Today"s UK morning press focuses on the disparate views of BoE Governor
Mervyn King and UK PM Gordon Brown re: next month"s budget (Apr 22). "The BoE and No.10 at war: We cannot afford Budget spending spree, Governor tells Brown" is the headline of the Daily Mail front page, re: yesterday"s comments from King to the UK Treasury Select Committee.

In the wake of King"s warning that Britain could not afford a second economic stimulus in next month"s budget, a No.10 official said the UK government would do "whatever it takes to create the growth and jobs we need" (Daily Telegraph, p1). The Times reports that UK ministers say Brown is keener than his Chancellor Alistair Darling to go for further expansionist Budget measures on April 22.

Sterling scaled a six-week peak of 1.4780 after yesterday"s 09:30GMT
disclosure that annualized UK CPI inflation unexpectedly rose to 3.2% last month. This forced King to write another of his "Dear Chancellor" letters. A CPI fall to 2.6%, from 3.0% in January, was forecast. Annualized RPI inflation ticked south to flat, from +0.1% in January. It was forecast at minus 0.8%.

Yesterday afternoon, King told the House of Lords Economic Committee that he is ready "to raise interest rates quickly and sharply" when the UK economy starts to recover (Daily Telegraph, B1). NY session highs just shy of 1.4780 were notched on the back of that comment. In his morning testimony to the TSC, King said that he may hold back from spending the full GBP 75bn the MPC had pledged to spend on its "Quantitative Easing" Asset Purchase Programme through mid-May (<TGM42336>).

March"s CBI retail sales balance is due at 11:00GMT. A fall to minus 35, from minus 25 in January, is forecast.

neilbond007

morning all!!

we're dropping!! stop it!! stop it right now!!!!

jonathanrichardson69

there she goes!!!

inspector_monkfish

neilbond007 wrote: »

morning all!!

we're dropping!! stop it!! stop it right now!!!!

you started it
you told them you were coming.....

inspector_monkfish

trading at 1.4620

Blink_Eden

Congrats Mr Bond. And soon you'll be able to watch Stoke in the 39th Match, so don't stress that.

I can't believe the $ - I fly in 48 hours, I need it to climb!

neilbond007

Blink_Eden wrote: »

Congrats Mr Bond. And soon you'll be able to watch Stoke in the 39th Match, so don't stress that.

I can't believe the $ - I fly in 48 hours, I need it to climb!

thanks!

what i tend to do now is to look at the rate from the beginning of the year... the graph / rate looks pretty good then

inspector_monkfish

09:14 25Mar09 GBP/USD: Sub-1.4600 Sell Stops Tripped, "Unmanageable" Lending

London,
March 25. Cable has tripped sell stops below 1.4600 en route to a new intra-day
low of 1.4578, amid talk of decent size corporate selling of the pound. 1.4550
(yesterday"s Asian session intra-day low) is a sterling support point.
1.4622 (yesterday"s early Europe pullback low from a late Asian session high
of 1.4738) and 1.4636 (today"s Asian session base) are now resistance levels.
1.4652 was the recovery rally high from today"s early Europe low of 1.4601.
Today"s Asian session top was 1.4720.
The volume of UK mortgage debt is currently running at an "unmanageable" 86%
of GDP--equating to about GBP 1,200bn, according to an annual world retail
banking report from Cap Gemini, Unicredit and EFMA. The report recommends 60% as
a sustainable upper level. The value of US mortgage debt is 104%, according to
the report (Daily Telegraph, B4).

inspector_monkfish

neilbond007 wrote: »

thanks!

what i tend to do now is to look at the rate from the beginning of the year... the graph / rate looks pretty good then

try looking at it from beginning of last year :eek:

inspector_monkfish

1.4620 looks like the level its going to bumble along around, at least until Retail Sales figures released at 11.00am