Dollars To Pounds - GBP/USD Daily Forex Chart 12th June 2009

Dollars To Pounds - GBP/USD Daily Forex Chart 12th June 2009

Yesterday’s wide spread up bar added further momentum to the already bullish British Pound as it continued its meteoric rise from the ashes of earlier in the year, fuelled by anti US dollar rhetoric from the US administration and unhelpful comments from FMOC such as Dennis Flockhart.  The pounds to dollars candle closed well above all three moving averages and holding above the minor support level created during last week’s turbulence during the political uncertainty in the UK.  With further dollar weakness likely it seems that our initial target of 1.6725 has appeared on the horizon sooner rather than later, and any reversal, as we have seen in this morning’s trading, may well be the market taking a breather as participants take their profits off the table, before continuing to push Cable higher.   Currency markets this morning have exhibited a degree of instability and volatility owing to the G8 and G20 meetings in Italy and Germany respectively which are now running over the next couple of days and any accidental or scripted comments will be closely analysed for any hidden clues as to future monetary policy.  The above meetings overshadow the economic news on the economic calendar, which is generally minor, and will have little impact given the significance of these meetings.

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