Forex News – 6th October 2011

EUR

Chatter going around in the market of a potential rate cut in today’s ECB rate
announcement at 11:45am GMT. The rate is not expected to change
(currently at 1.50%).

The market was pricing a 72% chance of a 25 basis point cut in today’s announcement
although there is a chance of a 50bps cut. The IMF suggested to cut rates in the
euro-zone but as you know The ECB does not take orders from anyone, it will be
interesting to see what will happen.

EUR/USD is currently trading at $1.3330 as traders await the new interest rate and
the last press conference of Jean-Claude Trichet as ECB President.

Resistance noted at $13414, support at $1.3277.

GBP

The BOE will meet today at 11:00am GMT to vote over the interest rate and
restarting QE program. Though nothing is expected to change, Analysts stamp
a 43% chance of QE being restarted in today’s meeting and a 75% chance of QE
restarted in November if it will not be confirmed today.

Restarting the QE will have a huge impact on GBP against other currencies such
as GBP/USD, EUR/GBP, GBP/CHF etc. One would expect GBP to weaken although from
personal experience I would suggest being next to the computer at 11:00am GMT
and act in accordance to what
you see.

This is may very well turn into a very profitable opportunity should QE be
restarted today.

Resistance tipped at $1.5497, support at $1.5415.

Commentary

Further gains in store.

Silver finally broke out its triangle, which should now be well-supported by
the tech traders.

The break outside the triangle may confirm further gains in the commodity,
targeting 33.47 in coming days.

A return back into the triangle defers this bullish view.

The publication cannot be distributed, copied and/or make any other usage without Bloombex Ltd.
Consent and written approval.
Although the data has been collected from reliable sources Bloombex does not vouch its accuracy
or precision. The quotes mentioned are for indication only, the implied conditions will only be the concluded
conditions when executing the trade.
The review is presented for instructive purposes in condition it will not be the key factor for trading.
The contents of this publication should not be construed as an express or implied promise, guarantee
Or implication by Bloombex.

Share This Post

Related Articles

© 2017 Global Forex Update.com. All rights reserved. Site Admin · Entries RSS · Comments RSS
Powered by WordPress · Designed by Theme Junkie