{"id":3256,"date":"2009-08-07T10:41:07","date_gmt":"2009-08-07T15:41:07","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3256"},"modified":"2009-08-07T10:41:07","modified_gmt":"2009-08-07T15:41:07","slug":"gbpusd-drops-with-broad-based-dollar-appreciation","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/07\/gbpusd-drops-with-broad-based-dollar-appreciation\/","title":{"rendered":"GBP\/USD Drops with Broad-Based Dollar Appreciation"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is reversing from our 2nd tier downtrend line and it appears the currency pair could have more immediate-term losses in store.\u00a0 If August 3rd lows don\u2019t hold we could witness a decline towards 1.66 and our 1st tier uptrend line.\u00a0 Looking across the board, we see huge gains in the USD\/JPY and large losses in the EUR\/USD while gold heads south.\u00a0 Additionally, the S&P futures are looking to break free of their highly psychological 1000 mark.\u00a0 All of these movements indicate a broad based appreciation WITH key upward movements in U.S. equities. America released better than expected employment data today and investors are taking notice.\u00a0 Rising unemployment has been the sore thumb in America\u2019s economic recovery, so a big improvement in the non-farm employment change is very encouraging for U.S. equities.\u00a0 However, the most notable development today is the reversal in correlation between the S&P and the Dollar.<\/p>\n

The Dollar\u2019s rapid appreciation across the board in light of today\u2019s economic data gives us reason to speculate that the positive correlation between the GBP\/USD and U.S. equities could be shifting.\u00a0 Investors are putting a lot of faith in the U.S. economy today by betting on both U.S. equities and the Greenback.\u00a0 We also notice a spike in volume to the sell-side in both the Cable and the EUR\/USD, indicating investors are putting their weight behind today\u2019s FX movement.\u00a0 However, it would be unwise to make a conclusion based on one day of activity.\u00a0 On the other hand, the clear reversal in today\u2019s correlation should ignite a great debate.<\/p>\n

Britain released data of its own today.\u00a0 Britain\u2019s PPI Input number came in much lower than expected, showing the UK is still experiencing deflationary pressures due to the decline in consumption.\u00a0 Today\u2019s PPI data tells us why the BOE added $84 billion to its QE package yesterday.\u00a0 Inflation obviously isn\u2019t a worry at the moment, and the BOE feels it\u2019s suitable to inject more liquidity to keep credit flowing.\u00a0\u00a0\u00a0 Meanwhile, investors should keep a close eye on the correlation between the GBP\/USD and U.S. equities.\u00a0 We are monitoring the reversal in correlation carefully, and will provide further observation-oriented analysis on Monday.<\/p>\n

Present Price: 1.6712<\/p>\n

Resistances: 1.6708, 1.6735, 1.6752, 1.6781, 1.6812<\/p>\n

Supports: 1.6693, 1.6675, 1.6645, 1.6605, 1.6572<\/p>\n

Psychological: 1.65<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/a>.<\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – The Cable is reversing from our 2nd tier downtrend line and it appears the currency pair could have more immediate-term losses in store.\u00a0 If August 3rd lows don\u2019t hold we could witness a decline towards 1.66 and our 1st tier uptrend line.\u00a0 Looking across the board, we see huge gains in … <\/p>\n

Continue reading “GBP\/USD Drops with Broad-Based Dollar Appreciation”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-3256","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=3256"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3256\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}