Forex Trading News – Currencies Direct

The forex trading market was left somewhat disappointed this morning as UK revised third quarter GDP came in as expected at -0.3% from -0.4%. In the run up to the announcement sterling rallied higher against the USD and the EUR as a rumour circulated that the data would show an upward revision to -0.1%. Market talk lately has been frequently way off the mark and today was no different and it was a case of buying the rumour and selling the fact once the data was released. The pound jumped to 1.6727 against the USD and 1.1135 on the euro; post data it dropped to 1.6675 and 1.1105. Yesterday was a poor day for sterling as Mervyn King’s speech set its usual dovish tone leaving the door open for further stimulus; however sterling managed to hold above key levels of 1.10 against the euro and 1.65 on the USD.

The big move in the forex trading markets is again focused on the USD with EUR/USD pushing over the key 1.50 level and targeting the resistance level of 1.5050. On the back of this USD weakness the pound has also managed to gain and hold good levels despite the disappointing GDP revision. Yesterday we had a flurry of data from the US economy and the outcome was mixed; GDP was revised lower and the Richmond Fed index came in weak suggesting a slowing in the manufacturing sector. On the upside S&P/Case-Shiller hose prices rose again and consumer confidence edged higher. The Fed minutes highlighted a concern on the low interest/weak dollar scenario which is looking set in stone at the moment; in addition the Fed raised growth and inflation forecasts and revised unemployment slightly downwards. In the current USD weak trend the big level is still for EUR/USD to break 1.5050.