Pound Dollar Chart 19 Oct 2009

Pound Dollar Chart 19 Oct 2009

The pounds to dollars pair continued to push higher yesterday, as Sterling recovering from the battering from the Bank of England, and another beneficary of the systemic US dollar weakness which is evident from the US dollar index which continued to break lower with each day that passes, and with little in the way of technical support or fundamental news, is set to continue for some time to come. For Cable bulls this is good news as we now wait to see whether the recent rally in the pounds to dollars pair has sufficient momentum to break above the strong resistance in the 1.67 price region, and clear this consolidation region once again. If so then we could see a sustained breakout, with sronger move higher in due course, and with yesterday’s low finding good support from the 40 day moving average, this looks increasingly likely.

There were only two items of fundamental news on the economic calendar for Sterling today: the first was the Public Sector Net Borrowing figure which came in marginally better than expected at £14.8bn and second the Preliminary M4 Money Supply which came in at 0.7%.  The final item of news is a speech from BOE Gov King who is due to speak in Edinburgh at 20.30 GMT – and it is more than likely that markets will react to his words especially if Gov King tries to be “helpful” again!!  All the news for the US is covered on the 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.