Pounds to US Dollars – GBP/USD Recovers From Yesterday’s Losses While GBP/EUR Also Edges Upwards
9 Mar 2011 at 2 PM - Written by John Cameron
The Pound Dollar exchange rate (GBP/USD) is 1.6192. The Pound Euro exchange rate (GBP/EUR) is 1.1651
Asian equities markets made further gains overnight, building on their forward move of the first part of the week. This move signals a pick up in global risk sentiment, which is re-enforced by oil prices which are now in a marked downtrend after their recent spike.
This improvement in risk sentiment has largely been due to a feeling that the Arab crisis of recent weeks may be nearing a conclusion, with rumours surfacing that Gaddafi may be negotiating an exit from Libya. Oil ministers in OPEC member nations Oman and Saudi Arabia have also spoken to re-assure the markets that they are willing to take steps to curb oil prices.
A significant effect of the drop in crude oil prices has been renewed support for the previously under-pressure US Dollar. The States is the world’s number one consumer of oil, so it would benefit disproportionately from a drop in prices.
Turning to the technical side, the GBP/USD pair came within 3 pips of a 13 month high when it touched 1.6341 Monday. This level was strongly rejected with the market re-tracing all the way down to 1.6125 yesterday. GBP/USD is now moving back towards the 1.6344 level. A third visit to this level would either provide confirmation of a strong resistance if it was again rejected, or a bullish signal if we saw a close above the level.
Elsewhere, the Japanese Yen has lost ground during today’s session to trade above 134 again, whilst analysts are closely watching the Reserve Bank of New Zealand’s interest rate announcement which comes at 2000hrs GMT tonight. Anything less than a 50bps cut by the RBNZ would not significantly harm the Kiwi, as a cut of this magnitude has already been factored in.
STORY LINK Pounds to US Dollars – GBP/USD Recovers From Yesterday’s Losses While GBP/EUR Also Edges Upwards
Pounds to US Dollars – GBP/USD Recovers From Yesterday’s Losses While GBP/EUR Also Edges Upwards
Asian equities markets made further gains overnight, building on their forward move of the first part of the week. This move signals a pick up in global risk sentiment, which is re-enforced by oil prices which are now in a marked downtrend after their recent spike.
This improvement in risk sentiment has largely been due to a feeling that the Arab crisis of recent weeks may be nearing a conclusion, with rumours surfacing that Gaddafi may be negotiating an exit from Libya. Oil ministers in OPEC member nations Oman and Saudi Arabia have also spoken to re-assure the markets that they are willing to take steps to curb oil prices.
A significant effect of the drop in crude oil prices has been renewed support for the previously under-pressure US Dollar. The States is the world’s number one consumer of oil, so it would benefit disproportionately from a drop in prices.
Turning to the technical side, the GBP/USD pair came within 3 pips of a 13 month high when it touched 1.6341 Monday. This level was strongly rejected with the market re-tracing all the way down to 1.6125 yesterday. GBP/USD is now moving back towards the 1.6344 level. A third visit to this level would either provide confirmation of a strong resistance if it was again rejected, or a bullish signal if we saw a close above the level.
Elsewhere, the Japanese Yen has lost ground during today’s session to trade above 134 again, whilst analysts are closely watching the Reserve Bank of New Zealand’s interest rate announcement which comes at 2000hrs GMT tonight. Anything less than a 50bps cut by the RBNZ would not significantly harm the Kiwi, as a cut of this magnitude has already been factored in.
TAGS: American Dollar Forecasts Euro Forecasts New Zealand Dollar Forecasts Pound Dollar Forecasts Pound Euro Forecasts Pound New Zealand Dollar Forecasts Pound Yen Forecasts
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