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25/5/2011 - The Current Market Sentiment

Discussion in 'Current Market Sentiments' started by fx-recommends, May 24, 2011.

  1. fx-recommends

    fx-recommends Content Contributor

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    The sterling could rebound after it had been under pressure because of the MPC's member Mr. Fisher said that the wrong thing to do is raising the interest at the current uncertainty about the consuming spending to drag it down below 1.61 before finding support to come over 1.62 again with the rising of US new home sales of April to 323k from 305 in March while the market was waiting for just 300k to lift the risk appetite again in the beginning of the US session putting pressure on the greenback which was finding support in the recent days because the negative impacts of EU debt crisis negative implications on the business confidence. Fisher is one of the MPC members majority which is still preferring the silence keeping the interest rate unchanged at .5% and the current 200 billion assets purchasing plan of BOE fearing from taking a certain direction can emerge risks of the other and this maintained view is dovish for the sterling interest rate outlook while the inflation pressure is still accelerating rising by 4.5% yearly in April but it is important to stimulate economic growth and it is important today to know more about UK current struggling growth pace by waiting the release of UK GDP of the first quarter which is expected to show growing up by .5% after shrinking by .5% quarterly in the last quarter of 2010 while the cable next supporting level is at 1.6 psychological level then 1.5935 again and over a longer range, it can get back to 1.5744 and by in the case of ascending back, it can meet resistance now at 1.6232, 1.6320 then 1.5616 which has been reached after BOE quarterly inflation report which has shown worries about rising of the inflation rate above 5% and breaking it can lead to 1.6573 which is the lower high by this year high at 1.6744

    Kind Regards
    FX Market Strategist
    Walid Salah El Din
    E-Mail: mail@fx-recommends.com
    http://www.fx-recommends.com
     
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