GB news fails to lift Pound

British Pound started going down a few hours before very important Bank of England Stability Report was released. It stabilized minutes before the release and now after the release all Pound pairs seem to be consolidating. Pound is generally weak, especially against New Zealand, Australian dollar and US dollar. The only currency that it seems to be strong against is Swiss Franc. 

I currently have longs in gbp/chf pair and planning to keep it till 1.4800 level. I expect the area to be reached by the end of the week. The pair seems to have formed double bottom pattern and is now trying to break 1.4500 resistance level. If news from Germany tomorrow and Friday is more negative than positive this resistance will not hold and the above mentioned take profit target will be reached as I have planned. 

I have no real ideas why commodity currencies are rallying, but it could be connected with some stability coming back from China. In my opinion, this counter trend move in Aussie and Kiwi pairs will be short lived and we will have good opportunities to sell rallies and go in the direction of the main downward trend. 

You can see how individual currencies doing here: http://seekingalpha.com/data/currencies

Key Forex news this week

There are a few important pieces of Forex news this week that a trader can hopefully capitalize on. I say hopefully, because not all events create significant volatility and moves. However, a few ones this week should be of interest to most speculators. Let us briefly mention them. 

Wednesday

Bank of England Financial Stability Report (coming at 9:30 GMT). This one should move all pound pairs. I particularly expect gbp/chf break upwards and the outcome for gbp/jpy and gbp/cad one way or another. 

Thursday

EU – German unemployment change (coming at 7:55 GMT). Euro may slip lower in various Euro denominated pairs. 

JPY – Japan National Consumer Price Index (coming at 23:30 GMT). Yen may start a fresh uptrend after a long collapse. Watch particularly aud/jpy, nzd/jpy and cad/jpy as commodity currencies seem to be very weak. 

Friday

EU – German Consumer Price Index (coming at 12:00 GMT). The number is expected better than previous month. Imagine what happens if it is actually worse. It would send Euro down across the board. 

CAD – Canada Gross Domestic Product (coming at 12:30 GMT). One thing is clear: either Canadian dollar will strengthen and reverse or we might see a new downtrend develop as Canadian dollar is near its’ yearly lows. 

I will post an update after tomorrow news from Britain comes. See you then.