The British pound after finding support again below 1.575, it could easily join the single currency creeping up this time versus the greenback today as the weights are still getting off it since the BOE decision to keep its stimulating buying bonds plan as it is at just
200B Stg and the minutes announcement of it which have shown 3 split ways in the MPC which refer to that there is no a close action from it can threat British pound by easing currently specially after Q3 GDP preliminary reading which surprised the market by coming up quarterly by .8% while it was widely expected to be just .4% lightening the pressure on the BOE to ease and giving it a chance to wait like the markets for the Fed to take its waited QE decision next month by God's will.The equities markets are still moving nearly in a side way these days after getting benefits from this awaited new stimulation package which could actually weaken the greenback value across the broad since the Fed's reference to it in its recent meeting which weighed negatively on the greenback which was already hurt by slowing down in growth and now by the market waiting for further liquidity to come to the market by the fed in a second round of its quantitive easing plan to stimulate the economy after easing back in the second half of this year buying more Mortgage backed securities and rolling over it?s holdings of treasury securities as they mature before the deterioration can have further negative impacts on the consuming and capital spending and to inform the markets that the Fed will not stand seeing the economy falling back in a second dip recession with no action even with the interest rate near 0% to fight the deflation emerging pressure in US helping the stocks prices which are waited for the economic growth to be pushed up by these new easing measures which are not expected to have an exit soon with no expected inflation pressure as the Fed's repeated recently and as we have seen last Friday the U.S. consumer prices of September rising up by just 0.1 percent and its core unchanged for the second month monthly by the end of last week.
The Single currency is still moving in a side range after sliding from
1.416 when Bernanke's repeated his mantra that the fed is ready to take further easing action whenever its needed to support the economic growth which has given the market the same seen conclusion and encourage it to start taking profits pushing the single currency down to 1.37 where it has succeeded to form a bottom to rise again with the beginning of this week to 1.4070 versus the greenback getting use of the G20 decision to leave the market free to determine its forex rates during the weekend but it could not keep these gains getting down again to 1.375 where it has started rising back again today but it still unable to cross above 1.395 until now. God willing, the pair is expected to keep this side way on waiting for the Fed's meeting to clear to the market its new easing plans.God Willing, it is important today to wait for US Q3 GDP preliminary reading which is waited to be up quarterly by just 2% and the price deflator of it to be 2% and also we have Chicago PMI of October which is expected to get down to 57.5 after strong rising in September to
60.4Best wishes
FX Consultant Walid Salah El Din E-Mail: snipped-for-privacy@fx-recommends.com