GBP/USD Daily Candle Chart - 9th April 2009

GBP/USD Daily Candle Chart - 9th April 2009

Unless and until cable manages we see a close on the weekly chart above 1.4975 then I’m afraid we are in for a sustained period of sideways consolidation on the pounds to dollars pair.  The only conclusion we can possibly draw is that the break may come to the upside as the close of each day so far this week has been above the 9 day moving average which is now playing a supportive role.  However, the trigger to any breakout may well come from the start of earnings season in US equity markets which kicked off earlier with astonishingly poor results from Alcoa, the first of the Dow 30 companies to report.

Today’s fundamental news on the economic calendar for the British Pound has focused on the MPC rate statement and, as expected, interest rates have been kept on hold at 0.5%.  The remainder of UK news items included better than expected trade balance figures, PPI output which came in on target and the CB (Conference Board) Index which is an amalgam of 7 economic indicators relating to production, new orders, consumer confidence, stock prices and interest rate spreads – a veritable minestrone of data!!  This managed to come in marginally worse at -0.6% against a previous of -0.5%.  All the fundamental data for the US is covered in the euro to dollar site.

With the shortened trading week and thin order flows trading this afternoon will be a bit of a lottery and I would suggest standing aside until early next week.

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