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FX Recommends - 20/8/2009 GBPUSD Analysis

Discussion in 'Major Currency Pairs' started by fx-recommends, Aug 20, 2009.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    The British pound came under pressure today after the release of July UK PSNB which have shown an unexpected increasing of the public net borrowing by 8 Bln Stg and the market was waiting for just 200 M. These data dampen the current national debit situation further putting pressure on the British pound which has found a breathing in today release of UK retail sales which rose by 3.3% y/y last month and they were expected to rise by just 2.7% after rising in June by 3.1%. The cable was already depressed by yesterday release of the MPC minutes of its recent meeting when it has surprised the market by adding further 50b Stg to its 125b Stg stimulation quantitive easing plan to make the gross of it 175b. This decision was expected to be unanimously but the market has been shocked by 3 members of the MPC voting for adding 75B Stg instead of just 50B Stg and one of those three was Marvin king himself. These opposing members have referred to the possibility of public confidence damage in the recovery which can flatter it suggesting that the inflation could be under the BOE target for a sustained period. The Cable is now trading again below 1.65 as the greenback has started to take the lead again after yesterday strong rally of the US stocks which put pressure on the greenback by the end of the US session.

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    FX Consultant
    Walid Salah El Din
    E-Mail: mail@fx-recommends.com
    #1 fx-recommends, Aug 20, 2009
    Last edited: Aug 20, 2009

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