Dollars To Pounds - Daily Candle Chart 16th July 2009

Dollars To Pounds - Daily Candle Chart 16th July 2009

The pounds to dollars daily chart continues to oscillate between the 1.60 and 1.67 trading range and shows little inclination or desire to move decisively one way or another.  Yesterday’s candle closed the session with a narrow spread up bar perched tentatively on the 14 day moving average with the 9 and 40 sitting below.  Today’s price action has been equally restrained fluttering around the 1.64 price handle and with no significant fundamental news on the economic calendar for the UK this trading scenario may well continue into tomorrow ahead of the weekend, particular as we are now entering the holiday season with extremely thin volumes.  Items of fundamental news for the US include the unemployment claims which came in better than expected at 522k against a forecast of 550k and later today the market waits for the TIC long term purchases data, followed by the Philly Fed Manufacturing Index.  These will be released along with further corporate earnings numbers and by the end of today we should have a clearer picture as to whether traders and investors have actually rediscovered their appetite for riskier assets.  My trading suggestion for this pair to stand aside and wait for these results in order to gauge the market’s mood towards the US Dollar.

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