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Pound Drops as GDP Data Raises QE Bets

Tradervox (Dublin) – The Office of National Statistics reported last week that the Gross domestic product for UK had fallen 0.3 percent dropping more than the market estimate of 0.2 percent drop. This led the pound to fall for the fourth week in a row against the dollar as investors choose the greenback over the pound as the best safe haven option. Safe haven demand has increased in the market due to the continued crisis in euro zone. The nation’s ten-year gilts also dropped two basis points after the report was released last week

Sterling Advances as Speculation Concerning QE Continues (Dublin) – The pound has been on demand as debt crisis in Europe aggravated to levels after Spain was degraded on Standard & Poor’s credit rating. Despite UK slipping back into recession, the demand for safety of the pound was high throughout the week. Moreover, speculation that Bank of England might pause its stimulus program has also boosted the demand for the sterling pound for the second week. The pound is experiencing demand as reports of Spain demotion by Standard and Poor’s was released and reports from US showed that the US economy slowed in the last quarter.

Pound Falls to Five Week Low Against the Euro

Tradervox (Dublin) – A report from the Office for National Statistics showed that the UK economy shrunk more than it had been expected in the last quarter forcing the sterling pound to decrease against the euro to five month’s low. This has been construed to mean that the government will now be considering more seriously about another round of asset purchases to accelerate growth in the country. The sterling pound fell against the euro and the dollar for the second day paring its gains since the start of the year.

Pound plunges while Euro holds

Tradervox (Dublin) – The single currency traded in a tight range but is stable above 1.3300 levels. Euro printed a high of 1.3372 but was unable to push higher. It is currently trading around 1.3343, up almost quarter of a percent for the day. The support may be seen at 1.3320 and below at 1.3260

US Third Quarter GDP to Guide US Dollar Trading Activity; Forex Technical Analysis Signals

US Third Quarter GDP to Guide US Dollar Trading Activity; Forex Technical Analysis Signals Risk sentiment was steady during the London session as the downward momentum in the EUR/USD has halted and the other high yielding currencies (such as AUD and NZD) have started tracking higher. In forex macro data, the UK current account deficit

Trading Week Outlook: Dec. 19 – Dec. 23

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Trading Week Outlook: Nov. 14 – Nov. 18

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GBP Higher Against the Dollar as Clearer Buying Supports Prices

UK clearers are seen behind the latest move in the British Pound as  highs of 1.5985 have now been reached intraday.  Risk sentiment is seen improving with US stock futures making gains and this is bringing selling pressure into the US Dollar.  The Dow Jones Industrials futures are showing gains of 146 points, after bouncing from negative territory  (down 52 points) during the European trading session.  Option expirations are seen at 1.5965 for today’s 10 am New York cut and this appears to be attracting prices as well.

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Nov. 5, 2011 ( – Although much lighter on pivotal economic data, the trading week ahead will not be any less intriguing as headlines from the Euro-zone debt crisis continue to dictate the market’s direction and traders prepare for the next act of the Greek drama, while keeping an eye on the political situation in […]

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Oct. 30, 2011 ( – With many unknowns still lingering after the rally fueled by the EU Summit’s new plan to contain the sovereign debt crisis, the first trading week of November could prove crucial for the fate of the financial markets, the euro and the U.S. dollar as the G20, the Fed and the […]

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Currency In Focus: British Pound

The British pound is a currency we are watching closely as it is pulling back to just ahead of pivot point support at 1.6242.  This comes ahead of the UK GDP report which is due out on Tuesday, July 26th. The GDP report is expected to show a declining economy, with quarterly growth of .2% […]

A Sigh of Relief

Although Europe is not out of the woods yet, at least there is some consensus about the navigation in which to get there. The markets have been rallying this morning with the news that authorities have finally come to an agreement in how best to deal with the Greek crises satisfying previous concerns. Even the […]

Risk-Off Sentiment Dominates NY Morning, USD/CAD Slides on Weaker Oil, GBP/USD Breaks Down Through Support

Overnight’s risk aversion in European markets has carried over into US equities. The Dow Jones Index was off 130 points or 1%, and the S&P 500 was down 13.75 points also 1% in early trading. In Europe, the FTSE 100 was down 75 points or 1.28%, the DAX was off 107 points of 1.5%, the FTSE MIB (Italy) down 487 points or 2.67%, and the IBEX 35 IDX (Spain) was off 110 points of 1.16%. We started the week with periphery yields blowing out yet again in Italy and Spain, as well as in the smaller already bailed countries of Ireland, Greece and Portugal. Credit default swaps on these nations also rose to record highs

I’ll be on CNN Radio at 4:45pm CST today.

I’ll be on CNN Radio in Dallas at 4:45pm – 5:20pm CST today. Listen Live:   Sean Hyman My E-Book Editor, Currency Cross Trader

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