Pair: GBPUSD
Date : 11/08/2011
Technical’s: Bullish Butterfly
Strategies: Buy on a Support 1.6174
News:
The Pound declined against the Euro and the U.S Dollar this morning, while the UK currency also fell to yet another record low versus the Swiss Franc.
"The Bank of England’s quarterly inflation report showed that the economic outlook is worsening in the UK and the governor Mervyn King gave an indication that policy makers can expand monetary stimulus at any time if growth deteriorates further," says Adam Solomon, an exchange rate analyst at UK money transfer company Tor Fx.
It is beginning to looking increasingly likely that the economy will slip into negative growth in the third quarter and that may prompt the BoE to begin bond-purchasing again through a means of quantitative easing.
A level of stability has returned to the market following a volatile few days, as global risk appetite improved following the rise in global equity markets.
The higher-yielding currencies subsequently gained ground versus the majors but the Swiss Franc continues to rally, despite attempts from the Swiss Central Bank to weaken the currency.
It may have potential
Be smart
Pair: GBPUSD
Date : 12/08/2011
Technical’s: Bullish Butterfly
Strategies: Buy on a Support 1.6174
Trade: Entry 1.6185 stop 1.6130
Short-term Expectation: 1.6238
News:
U.K. stocks climbed the most since May 2010, with the benchmark FTSE 100 Index rebounding from a 13-month low, as mining companies advanced. BHP Billiton Ltd., the world’s largest mining company,climbed 5.4 percent. Aquarius Platinum Ltd. gained 8.6 percent after earnings beat analysts’ estimates. Hays Plc, the U.K.’s biggest recruitment company, rose 3.9 percent as UBS AG advised buying the shares.The FTSE 100 gained 3.1 percent to 5,162.83 at the 4:30 p.m. close in London, having earlier fallen as much as 1.3 percent. The FTSE All-Share Index advanced 3 percent, while Ireland’s ISEQ Index climbed 1.7 percent.The FTSE 100 had declined 16 percent from the beginning of July through yesterday, wiping more than $566 billion from the value of U.K. shares, on speculation that Europe will fail to contain its sovereign-debt crisis and that the U.S. economic recovery is faltering. The slump has pushed down the gauge’s price-to-earnings ratio to 9.1 times the estimated earnings of its constituent companies, below the average multiple of 11.5 over the last five years, according to data compiled by Bloomberg. "I’ve been putting money to work, gently," said Piers Hillier, chief investment officer at Liverpool Victoria Asset Management Ltd., which manages 8 billion pounds ($13 billion) "Incrementally adding here is a sensible thing," he said in a Bloomberg Television interview. He is "overweight" in developed-market equities.
Newws by forexpros
U.K. stocks climbed the most since May 2010, with the benchmark FTSE 100 Index rebounding from a 13-month low, as mining companies advanced. BHP Billiton Ltd., the world’s largest mining company,climbed 5.4 percent. Aquarius Platinum Ltd. gained 8.6 percent after earnings beat analysts’ estimates. Hays Plc, the U.K.’s biggest recruitment company, rose 3.9 percent as UBS AG advised buying the shares.The FTSE 100 gained 3.1 percent to 5,162.83 at the 4:30 p.m. close in London, having earlier fallen as much as 1.3 percent. The FTSE All-Share Index advanced 3 percent, while Ireland’s ISEQ Index climbed 1.7 percent.The FTSE 100 had declined 16 percent from the beginning of July through yesterday, wiping more than $566 billion from the value of U.K. shares, on speculation that Europe will fail to contain its sovereign-debt crisis and that the U.S. economic recovery is faltering. The slump has pushed down the gauge’s price-to-earnings ratio to 9.1 times the estimated earnings of its constituent companies, below the average multiple of 11.5 over the last five years, according to data compiled by Bloomberg. "I’ve been putting money to work, gently," said Piers Hillier, chief investment officer at Liverpool Victoria Asset Management Ltd., which manages 8 billion pounds ($13 billion) "Incrementally adding here is a sensible thing," he said in a Bloomberg Television interview. He is "overweight" in developed-market equities.
Newws by forexpros
Conclusions:
Worked out nicely
Concerns:
It fails Bad news whip sawed out!!
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