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British Pound Rallies amid Rise in U.K. Trade Balance

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jan 12, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    The U.S. Dollar finished higher on Tuesday against a trade weighted basket of currencies while losing ground to the British Pound and Japanese Yen. Risk aversion was high as demand for safer assets rose after China’s central bank took action to prevent the economy from overheating. This was a strong hint that it was prepared to raise interest rates and end government stimulus measures.

    The GBP USD opened slightly better and advanced throughout the day following a report which showed the U.K. trade balance narrowed. Traders attributed the improvement to an increase in exports.

    Demand for lower-yielding assets helped pressure the USD JPY. Early last night, selling pressure helped create a new main top at 93.77. Based on the monthly range of 84.83 to 93.77, the chart indicates plenty of room to the downside with 89.30 a potential downside target.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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