Pound vs Dollar - Daily FX Chart 27th April 2009

Pound vs Dollar - Daily FX Chart 27th April 2009

The only item of fundamental news on the economic calendar for today relates to the British Pound where figures released earlier this morning confirmed the parlous state of the housing market with a decline in the number of mortgage approvals which came in much lower than expected at just over 26k for March against a forecast of 29k.  This was a further slide of 7%  and was 25% lower than in the same period last year.  The fall follows on the back of 3 months of rising approvals and could be a signal that the fragile recovery in the housing market has stalled despite apparent increased activity.  The data represents the number of new mortgages approved for home purchase by the BBA (British Bankers Association) and is generally considered an important leading indicator as this association represents around 60% of the total UK market.

Friday’s long legged doji did little to inject any sense of direction into the pounds to dollars pair which closed the week firmly sandwiched between the moving averages and once again consolidating in a remorseless sideways movement which will continue unless and until the pair either break and hold above the 1.5000 price point or below 1.3800 price point.   My trading suggestion for today is step aside until tomorrow or Wednesday when we should see a modicum of volatility enter the currency market as a slew of important news items are expected.

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