Wednesday, 17 Mar 2010

The British Pound Continued its Bullish Trend against the Greenback

The rally in the EUR and GBP continued today. The up trend was was supported by strong positive data from the U.K. The Claimant Count report showed U.K. jobless claims are declining. Later, the rally came to a halt, as some currency pairs reached strong resistance levels. Currency market was calm, in the afternoon trade, as investors seemed to recalculate their positions in anticipation to Bernanke's, U.S. Fed Chairman, testify. His words will be examined carefully and might affect the USD against other currencies in the next coming days.

The GBP/USD traded as high as 1.5380 during the day and retreated back to 1.5320, still positive for the day. EUR/USD managed to cross 1.380, reaching 1.3817, but is currently trading at 1.36733, lower than the day opening price. The main story of the day was the JPY, which started lower against other major currencies in anticipation of Bank of Japan (BoJ) statement. At 4am GMT BoJ declared on further easing monetary steps to start kick the Japanese economy. However, the JPY gained back its losses against the USD, currently trading at 90.22, almost unchanged for the day.