Posted by: Babu Suresh | September 15, 2009

GBPUSD-GBPJPY-150909

Hello Friends,

Glad to see you all.

GBPUSD-150909There is an interesting situation developing in the market. On the one hand, BOE does not want it’s currency remaining stronger and on the other hand, USD lovers don’t want their currency becoming stronger. Both are understandable, acceptable and justifiable from various aspects. For BOE and British govt. if their real estate, supposed to be key to their economic growth, that’s what they claim, has to start improving, with Pound at these levels it’s quite difficult but if the USD gains, US Govt. cannot afford to increase their oil stock and other essential commodities and there could be other hidden reasons as well. Crude has all the possibilities to cross USD100 in the foreseeable future as almost all the economies are rebounding at a better pace than expected, nevertheless Crude can also once again test 50s before rebounding.

GBPUSD-1-150909Although a massive correction cannot be ruled out and it can be due to both technical as well as BOE start selling Pound. The second aspect would have already been happening; this, you and I will come to know through our infamous media only when Pound breaches 1.5500.

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