Sterling up on dollar weakness
The US Dollar extended its downward correction against the majors yesterday after Federal Reserve Chief Greenspan expressed concern on the decline in long-term interest rates, which traders interpreted as a sign of possible slowdown of the US economy.
The Yen benefited from renewed Chinese revaluation talks ahead of upcoming G7 meeting. Governor of The People's Bank of China expressed his commitment on bringing about a change in China's currency regime but also reiterated that it could take some time.
Meanwhile, the Euro steadied after ECB President Trichet eased concerns of an imminent rate cut in the Eurozone. GBP witnessed the most noticeable movement as it quickly raced higher after breaching 1.8300 levels.
Outlook for the day
EUR/USD - Euro's corrective rally is facing tough resistance in narrow 1.2340-1.2400 area. Expected range 1.2250-1.2350.
GBP/USD - GBP's corrective rally is also facing tough technical barriers at 1.8400 and 1.8450. Expected range today 1.8300-1.8400.
USD/JPY - Yen is expected to trade in 106.50-107.50 range with a slightly weaker bias.
The Yen benefited from renewed Chinese revaluation talks ahead of upcoming G7 meeting. Governor of The People's Bank of China expressed his commitment on bringing about a change in China's currency regime but also reiterated that it could take some time.
Meanwhile, the Euro steadied after ECB President Trichet eased concerns of an imminent rate cut in the Eurozone. GBP witnessed the most noticeable movement as it quickly raced higher after breaching 1.8300 levels.
Outlook for the day
EUR/USD - Euro's corrective rally is facing tough resistance in narrow 1.2340-1.2400 area. Expected range 1.2250-1.2350.
GBP/USD - GBP's corrective rally is also facing tough technical barriers at 1.8400 and 1.8450. Expected range today 1.8300-1.8400.
USD/JPY - Yen is expected to trade in 106.50-107.50 range with a slightly weaker bias.
posted by Drs Search @ 9:37 AM
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