Pound reverses course after minutes

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.

GBP CPI better but Pound falls

Today is one of those days where most traders do not understand what happens. A much awaited Great Britain CPI numbers were released today and the data came out better than expected. However, British Pound fell against major currencies. Neither me, nor any Forex specialist would be able to explain what and why it is happening, but it does happen from time to time. Does it mean that big market dogs want to take British Pound lower? Maybe, anyway there is even more important news scheduled for Pound tomorrow and that is Bank of England minutes. 

I hope this data will be accepted in a logically understandable fashion and the direction of the currency will reflect its’ fundamentals and not some big boys sentiment. I am slightly bullish in gbp/chf (lost on a small long position today) and intend to long gbp/jpy tomorrow if the current resistance is taken out.

British Pound to strengthen against Swiss Franc

I am looking at gbp/chf pair and see bullish price action in it. 1.4500 level has to be broken with confidence so that bullish trend would be confirmed. We have very important data coming this week from Great Britain that might influence price action in Pound pairs. Looking at eur/gbp pair you might see the same thing that you can see in gbp/chf pair too.

Consumer Price index from Great Britain on Tuesday at 8:30 GMT will probably move the above mentioned pairs one way or another. I hope British Pound will strengthen. On Wednesday we will have another risk event that can impact Pound pairs and that will be Bank of England minutes. It is to be released at 8:30 GMT too.

I will write on other very important news events tomorrow.