dollars to pounds

Pounds to Dollars Chart 9 Aug 2010

While the markets wait for this week’s fundamental news the pounds to dollars pair continues to flirt with the psychological USD1.60 price handle with Friday’s candle falling short at 1.5994 as today’s price action confined to a narrow price range and consolidating neatly below this significant price point.  From a technical perspective the pounds to dollars pair is continuing its upwards rally, fully supported by all 4 moving averages and such a positive sentiment is reflected across all the time frames.  While details of all the fundamental news for the week can be found on my main forex trading site, the highlight is tomorrow’s FOMC meeting which has come at a time when the US economy is teetering precariously on the brink of falling back into recession.  This fear will, of course, impact all markets but for the forex markets it may lead to a continued period of dollar weakness, as evidenced on the usd index which fell through the 200 day moving average on Friday following release of the worse than expected non farm payroll numbers.  For sterling the main event of the week comes on Wednesday with the BOE inflation report and should it come in more hawkish than expected should certainly help to move the present dollars to pounds rally further forward.

What is one of the best retail forex trading platforms?  In my view it is Metatrader 4.  Advanced, powerful & intuitive it now comes with ECN execution, so you can happily scalp away without broker or dealer intervention.  Just download your free demo copy of MT4 by following this link – download metatrader free –  and get started today.  Don’t forget to follow my daily posts for updates and analysis of the forex markets to help you with your forex trading – so good luck and good trading.

Dollar in doldrums as FED meeting looms

Gloomy outlook expected from the BOE