Yesterday was a bad day for British Pound when CPI
was released. However, today the picture changed as Bank of England minutes
were released and Pound rallied against all currency pairs. In most cases the
move was around one hundred pips in a matter of a few minutes. I do expect this
strength to continue as bullish minutes show intentions of Bank of England to
increase interest rates in the nearest future. It may not do so, but as
inflation picks up they will be forced to do that sooner rather than later.
Another risk even is coming in about ten minutes
when chief of Federal Reserve Ben Bernanke will give a speech on semiannual
policy to the House. The bias remains bearish for the US dollar. The last thing
that can move markets today is the interest rate decision from the Central Bank
of Canada. Canadian dollar looks slightly bullish, particularly against
Japanese Yen and possibly US dollar. However, we have to see what Ben Bernanke
points out to US politicians regarding his financial policy. I am intending to
buy eur/usd above 1.3155 and cad/jpy if it goes above 96.10 level with a 30 pip
stop. The take profit area is around 97.00 for cad/jpy and 1.3290 for eur/usd.
No comments:
Post a Comment