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Pound to Euro Which Way Is The Currency Pair Moving

Thu, 23 Dec 2010 22:04:09 +0000

The pound valued via 0.85 pound to euro for the first time in a lot more than six months amid increasing hypothesis that the Bank of England won’t prolong its asset-purchase plan to assist the economic recovery.
The pound to euro strengthened typically for a sixth day, the longest profitable streak after April 8. The key financial institution, led by Governor Mervyn King, yesterday predicted larger inflation for following yr and mentioned it’s “ready to reply in both direction” as price-rises are equally probably to exceed or undershoot the 2 % goal more than two years.
“The pound is nonetheless has tailwinds from the inflation report,” said Geoffrey Yu, a foreign-exchange strategist at UBS AG in London. “There was selective studying; when Mervyn King stated there are strong upside and downside risks, people just go through the first element of the sentence.”
BOE (Bank of England) officers voted to depart their bond- acquire program at 200 billion pounds on Nov. 4th, declining to stick to the U.S. Federal Reserve in building stimulus, as UK persuaded them to not indulge in further assistance. Gross domestic product grew 0.8 % in the third 25%, twice as rapid as analysts had forecast.

Pound to Euro Which Way Is The Currency Pair Moving post from Forex Trading Blog

What Is Range Trading

Thu, 23 Dec 2010 03:12:42 +0000

Range trading, or range-bound trading, is a trading style in which a financial product (fore example currency or stock) is watched that have either been rising off a support price or falling off a resistance price. Let’s talk in the context of forex trading. That is, every time the currency pair hits a high, it falls back to the low, and vice versa. Such a currency pair is said to be “trading in a range”, which is the opposite of trending. The range trader therefore buys the currency at or near the low price, and sells (and possibly short sells) at the high. A related approach to range trading is looking for moves outside of an established range, called a breakout (price moves up) or a breakdown (price moves down), and assume that once the range has been broken prices will continue in that direction for some time.

The same principles of range trading are equally applicable in the stock market as well as other financial markets.

What Is Range Trading post from Forex Trading Blog

The AUD/USD Trend

Sat, 04 Dec 2010 21:56:19 +0000

AUD/USD has blasted higher today, boosted by renewed risk appetites. It’s hard to get wildly bullish on this pair given the fairly rapid deceleration of Aussie economic stats of late. Looks like the RBA can comfortably stay on hold for the next few quarters…

Technically, AUD is retesting the neckline from the head and shoulders pattern that has been unfolding in the last week or so. If it holds below the 0.9780 area, downward pressure should return.

A small short with a tight stop above 0.9800 looks like a solid risk-reward proposition for a return to the 0.95 handle and potentially below in the weeks ahead.

The AUD/USD Trend post from Forex Trading Blog