Forex News – 7th July 2011


The BOE is expected to keep put rates on hold at 0.50% along with the assets purchase
facility (QE) the announcement is scheduled at 11am GMT. The MCP members will gather together
to discuss the possibility of expanding the assets purchase facility, which is currently 200 billion
pounds. The great debate where such a move can take place due to the high inflation in the UK.
An expansion of QE tends to weaken the currency. To highlight the market is not anticipation an
expansion, so such move will have a big impact on the pound.


The EURO is currently on the rise as the market expects the ECB to raise its minimum bid rate by
25bps as well as the IMF releasing the next pranche tomorrow.
The press conference will begin 45 minutes after the rate announcement where traders will look
for further clues to the next hike in the Euro-zone.

Technical Observation, EUR/USD


The EUR/USD is trading at the minor support at 1.4300 and the minor resistance at 1.4343(4H 100MA).
The brake bellow 1.4300 may extent weakness towards a minimum target of 1.4240.

A break above 1.4343 negates this view.

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