Pounds to Dollars 13 Oct 2009

Pounds to Dollars 13 Oct 2009

An interesting day for the pounds to dollars pair which duly saw a short squeeze primarily fuelled by the continued and chronic dollar weakness which seems to be a permanent feature of the forex market at present.  The candle for the day ended as an up bar but with a deep lower shadow suggesting that  a degree of bullish sentiment has returned to Sterling.  Indeed this price action was a repeat of Monday’s, with the low of both days finding some support in the 1.57 region.  However, the high of yesterday also found resistance at the 9 day/14 day moving average crossing point suggesting that any move higher may only be short lived.   The longer term trend for the pounds to dollars pair still remains bearish but yesterday’s price action will certainly lead to plenty of intra day swing trade opportunities.

Items of fundamental news on the economic calendar for the UK started earlier today with data relating to the labour market.  The first item was the Claimant Count Change which came in at 20.8K, much better than the forecast 25.1K, the Average Earnings Index which too came in at 1.6% against a forecast of 1.4% and finally the unemployment rate which posted 7.9%, a small improvement against the 8% forecast.  All the fundamental news items relating to the US can be found on my main eurodollar site.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.