Monday, 6 Sep 2010

GBP/USD Down Sharply

In light trading today a majority of the major currencies maintained tight trading ranges. The lone exception was the British pound which has been under pressure over the course of the day.

The GBP/USD was trading sharply lower at 1.5360, from an opening day price of 1.5488. The GBP/USD continues to fall but has repeatedly found support at the 100-day exponential moving average.

The pound was also weaker versus the euro with the EUR/GBP up at 0.8382, after opening the day at 0.8327. The GBP/JPY was down at 129.30, after opening at 130.52.

Positive sentiment from the upbeat US Non-farm payrolls numbers carried over into the Asian trading session this morning. However, by lunchtime in Europe the positive sentiment had faded.

Light trading should be seen this afternoon as the US markets are closed in observance of Labor Day .This week traders will be focusing on central bank meetings in Britain and Australia. Both are expected to hold interest rates steady. Speculations of further quantitative easing may be influencing the movements of the pound and the Aussie dollar.