fbpx

Tag: GBPJPY

Posted on

Sterling Digest, May 4 2012: NFP preview

JOB Toulouse
Jobs remain important catalyst for markets

The spotlight event of the month for the forex markets is today’s US NFP release. As USD sentiment seems to have shifted to fundamental flows rather than risk flows, a disappointing number could weaken the USD. $GBPUSD has found support at 1.6160 all week. US NFP should be a catalyst for further correction or a continuation of the bullish trend.

Image credit

Posted on

Sterling Digest, April 29 2012: bears want in

One pound coin
One pound coin

After such a bullish close to the week, it seems almost natural that sellers and sterling bears start piling into the market looking for their next opportunity at these higher levels.

Image credit

Posted on

Sterling Digest, April 26 2012: double-dip musings

UK : 20 Pounds : Reverse
Manufacturing written on the money. It's that important.

There is so much commentary about the British economy following the release of official data that revealed the UK economy is in a double-dip recession. Traders, however, look ahead to the Bank of Japan rate announcement for whether the $GBPJPY remains supported above its major psychological level at 130.00.

Image credit

Posted on

Sterling Digest, April 24 2012: the moment of truth

Is another recession on its way?

Wednesday may be a moment of truth in this sterling rally that has taken hold since the beginning of the year. Though the Federal Reserve announces its decision on monetary policy tomorrow, sterling traders have their eyes on the UK GDP release earlier that morning. But the Bank of England has already dismissed the GDP release. The BoE gives inflation trends more weight than the economy when setting monetary policy. So on disappointing GDP expect sterling to weaken, but that move lower may only be temporary as the market discounts GDP much like the BoE already has.

Image credit

 

 

Posted on

Sterling Digest, April 11, 2012: central bank fodder

Central bank balance sheets versus the SP500
Central banks at work

The 2 most active central banks last year are still drawing lots of attention from market participants. Both the BoJ and SNB are major threats of more intervention in the forex markets in 2012. Personally, I am not a fan of trading directly with or against central banks so I stay away from CHF or JPY pairs. However, as so aptly put in Credit Writedowns (below), even investors without CHF exposure should still follow this story. With so much central bank rhetoric, when will the market finally take notice?

Image credit

Posted on

Sterling Digest, April 10, 2012: accommodating growth

A new twist in Myanmar
Arm twisting has also forced the UK to forge new international relationships

Sterling has been mixed bag as European traders came back to the markets today after a long Easter weekend. Currency pairs should trade very technically during this relatively quiet news week out of the UK.

Image credit

 

 

Posted on

Sterling Digest: April 4, 2012

A Bank of England Old One Pound Banknote
Looking ahead to the BoE

UK PMI numbers continue to surprise to the upside this week. While this string of positive data is not enough to declare a robust recovery in the UK, it certainly can be enough to keep the Bank of England from moving on monetary policy tomorrow and allow them to wait-and-see. With ECB out of the way today, traders look ahead to tomorrow’s BoE interest rate announcement.

Image credit

Posted on

Sterling Digest: March 30, 2012


If central banks allow gold to become money, how would they enact QE??

A choppy week has given away to sterling strength with $GBPUSD breaking above the major psychological level at 1.60. Traders say month end flows are to blame for sterling strength when its fundamentals hold a more ominous outlook for the currency. BoE next week will continue these breakouts and trigger some profit-taking as most pairs sit GBP bullish at key levels into the weekend …despite the headlines.

Image credit

Posted on

Sterling Digest: March 28, 2012

Kal's Cartoon on The Economist
All eyes on oil

Sterling manages to stage a decent correction in today’s trading session. Yet, it is the AUD taking it on the chin today as it suffers from a double whammy of commodities weakness and USD strength. It was the only currency pair that sterling rallied higher against without much pullback. The timing with now confirmed Chinese softness (causing the commodities weakness) gives the $GBPAUD legs to run higher.

Image credit

Posted on

Sterling Digest: March 27, 2012

Britain's budget for global business
Weak economy, strong sterling. Go figure.

Sterling refuses to weaken even as economic data slips and members of the BoE still look to add more QE. The $GBPUSD continues to make higher highs at 1.5999 though still remains capped by the major 1.60 level. Even the almighty commodity dollars (AUD, NZD, and CAD) are weak against the GBP. Are we seeing the beginnings of a bear trend reversal in sterling?

Image credit

 

 

Proudly powered by WordPress