Pounds To Dollars - Daily Chart 2nd July 2009

Pounds To Dollars - Daily Chart 2nd July 2009

Yesterday’s candle on the daily chart for the pounds to dollars pair failed to provide any clear signal to the likely future direction for the pair, ending the day as a small doji balanced neatly on the 9 and 14 day moving averages.  The only significant analysis would be that this failed to provide any confirmation or otherwise of the bearish  signal of Tuesday which came about as a result of the horrific GDP data released in the UK.  Today, of course, the short term direction of the US Dollar will largely be dictated by a combination of the Non Farm Payroll figures, which if they follow the pattern of yesterday’s ADP figures, may well provide a shock to the market, and the ECB rate decision and statement.  These two factors will provide a powerful cocktail of volatility which will make any trading virtually impossible and a total lottery.  In the short to medium term today may well set the tone and trend moving forward and could well provide the trigger needed to break the current slough of sideways trading.

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