The Fusion Media Network: |
 |
Welcome,
Guest!
- BROKERS
Main Directory Promotions Interviews Compare Demo Accounts Live Accounts Special Offer - SOFTWARE
Main Charts Signals Trading Platforms - FUND MANAGERS
Main Interviews - EDUCATION
Main - MEMBERSHIP
Technical
Central Banks
Forex Brokers
Trading Tools
Inflationary News Supports British Pound
By: James Hyerczyk - 15-07-2008
0votesThe GBP/USD surged to an almost four month high on stronger than expected inflationary news out of the U.K..
Financial market traders in the U.K. are taking this as a sign that the Bank of England is in no position to lower rates and at the least will leave rates unchanged at its next meeting.
The BOE's hands are tied because raising rates from current levels would most likely stifle any economic growth which is taking place.
A deepening housing situation is the U.K.'s worse problem. So far there has been no evidence that the U.S. financial crisis has reached the same proportion in England.
Despite the bullishness in the Pound, this market exceeded most expectations on Tuesday's rally and could be set up for a profit-taking break.
Based on the current short-term range, do not be surprised by a break back to 1.9902 to 1.9842.
Next Analysis: USD/CHF Hits Downside Objective; Look for Short-Covering RallyContent Provided by:
James Hyerczyk
James A. Hyerczyk is a registered Commodity Trading Advisor with the National Futures Association.
Mr. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor.
DISCLAIMER:
Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee from James A. Hyerczyk and J.A.H. Research and Trading or its subsidiaries and/or affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of positions such as "spread" or "straddle" trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Become a member and get 6 free Forex courses by OTA! - Charts
- Survey
How long have you been trading forex?
Browse The Entire ForexPros.com Site:
News
Quotes
Forex Analysis
Forex Brokers
Forex Software
Live Events
Charts
Fund Managers
Education
Forex Forums
Languages
