pounds to dollars

Pounds to Dollars Forex Chart 22 Sep 2010

The pounds to dollars pair continues to trade in a relatively narrow range and even yesterday’s bout of US dollar weakness as a result of the FOMC statement and its intention to enter into a further round of quantitative easing, failed to provide much impetus for the pair which struggled to close above the 40 day average as a narrow spread up candle on the day.  Unlike the euro to dollar, which is currently on a short term bull run, the reaction in the pounds to dollars pair to yesterday’s fundamental news has been more muted as it continues to remain waterlogged between USD1.55 to the downside and USD1.57 to the upside.  Indeed in today’s trading whilst other pairs have continued strongly higher, cable has pulled back from a high of USD1.5715 to trade at time of writing at USD1.5641. Despite this rather negative assessment the pair continue perched above all four moving averages and provided we see the 9 day cross the 40 day then we could see a resumption of the weak bullish trend and a consequent move to re-test the high of June at USD1.5998 in due course.

Today’s fundamental news for the pair saw the MPC minutes come in as expected and with only the crude oil inventories this afternoon in the states, the forex markets will continue to react to yesterday’s FED statement and wait for tomorrow’s unemployment data and existing home sales.