Corporate foreign exchange news

Forex market news: Pound stance neutral, may see breakout

Monday, 09 November 2009 09:12:48 GMT

The British pound could see breakouts against the dollar this week after the publication of inflation and employment figures on Wednesday (November 11th).
Sterling performed strongly last week, with a late rally witnessed after the Bank of England's announcement that it will extend the quantitative easing programme by £25 billion, taking the total cost to £200 billion.
Daily FX comments that while this would normally promote a bearish stance on the currency, expectations of a £50 billion extension were dashed by the Bank of England, restoring a degree of confidence in the currency.
Looking ahead to this week, analyst David Rodriguez speculated: "Whether or not the GBP can continue recent gains may depend on the coming week's employment numbers, but previously-extreme FX market positioning suggests that risks remain to the topside."
At its meeting last week, the Bank of England also voted to keep interest rates at 0.5 per cent, a record low for the 315-year-old institution.ADNFCR-2522-ID-19448707-ADNFCR
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