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Pound rises on buoyant services report

Published 04/05/2011, 08:01 AM
Updated 04/05/2011, 08:04 AM

The pound rallied against majors after upbeat services data which showed that nation's largest sector expanded to 57.1, 13-month high, in March from 52.6.

Yet, the outlook for the British economy is bumpy and direction of the pound will probably be determined if the BoE decided to change either raise interest rate or expand the APF.

The British pound versus the dollar, it advanced for the third day after PMI services data to trade around 1.6227, after reaching a high of 1.6249 and a low of 1.6089.

The trading range for this week is among the key support at 1.5870 and the key resistance at 1.6500.

On the other hand, the dollar inched against a basket of major currencies to 76.00 compared with the day's opening level of 75.88, according to the dollar index, ahead of the release of ISM non-manufacturing report and Federal Open Committee minutes.

Concerning the euro-dollar pair, it slipped for the second day after Portugal's 10-year yield rose to record high following Moody's announcement that the new Portuguese government should try to get a bailout from the EU.

So far, the pair is trading at 1.4174 after recording a high of 1.4157 and a low of 1.4157, whereas the trading range for this week is among the key support at 1.4000 and the key resistance at 1.4500.

With regard to the dollar-yen pair, it is showing slight advance on the daily charts, as it seems to continue the upside direction that started sine Mid March after taking a breather yesterday.

The pair is trading at 84.19 meanwhile after reaching a high of 84.47 and a low of 83.99, while the trading range for this week is among the key support at 82.35 and the key resistance at 86.30.

 

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