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The current market sentiment

Published 02/11/2007, 07:00 PM
Updated 03/09/2019, 08:30 AM

The British pound is still under pressure after the MPC recent voting. Technically, it has formed a lower high just above 1.97 versus the dollar which was its previous resistance before forming its year high at 1.992 a day ahead of that voting. The currency market was waiting for 7 to 2 voting but 5 to 4 has given a very mixed outlook contributed in forming this down trend. By god's will, the cable can reach 1.93 areas which was its previous resistance before the USD slump in last November.  Last Wednesday MPC meeting came too with no change ensuring that same sentiment that there is no further interest rate hikes soon. The cable can be under pressure from the single currency after yesterday Trichet's signal that it is currently strongly vigilant! This means that the market should wait another .25% next month tightening the yield differential outlook advantage of the pound versus the EURO can be in check as the ECB is looking faster than the MPC to tight its monetary policy which bid the euro higher generally this week.

JPY is still mixed tightening or holding after the BOJ acceptance of the official growth concerning in the case of tightening. Also the CPI of Jan came at a lower pace than expected just .1% up monthly and this can underpin the BOJ to hold further even with this current uncertainty of the interest outlook in Japan, it can not give a near end of the carrying trades in advantage of the USD and the European currency.

 

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