Pound & Dollar
With Friday 3rd July being a holiday in the USA, some volatility within the trading ranges was expected. However, in the UK trading there wasn’t any as the markets remained relatively quiet ahead of the weekend. The US dollar has made gains especially against sterling where it has moved below the crucial support of 1.62 to 1.6140 currently, this is a break lower in the recent trading range.
Sterling has not been helped with news that the Bank Of England’s monetary policy committee is expected to extend its programme of quantitative easing by £25 billion this week- this is sterling negative, especially given the fact the Europe have not committed to extend their programme on QE. If the extension does proceed it is likely that this will be the last expansion of the QE programme by the Bank of England.
Watch out for sterling today as technically and fundamentally it is on the ropes!
SOURCE: currenciesdirect.com
