The British pound rose slightly during the day on Friday, grinding towards the 1.28 handle. The 1.28 level is obviously offering a bit of resistance, but it appears that the market is stubbornly trying to break above there.
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The Australian dollar shut higher initially during the day on Friday, but then pulled back to test the opening again, only to rally and reach towards the 0.7625 handle.
The Bank of England’s Monetary Policy Committee is almost certain to keep interest rates unchanged today despite inflation rising well above its 2% target.
The EURUSD pair shot like a rocket into the stratosphere after less than impressive US numbers came out during the early New York trading.
The Australian dollar try to rally during the session on Tuesday, but found enough resistance above the turnaround for a bit of a shooting star.
The GBPUSD started the day how it ended yesterday: higher. Speculators were still felling bullish after the stronger UK inflation figures had raised the prospects that the Bank of England may turn hawkish.
Crude oil was unable to hold onto its gains on Monday after appearing for a while to have ended its bearish run. Oil prices have fallen for three consecutive weeks after the OPEC and Russia failed to surprise the markets with their decision to extend the oil production deal.
Today’s going to be a quieter session in terms of economic news, ahead of key events later this week. There are however at least three factors that need to be watched closely.
The Australian dollar gapped lower at the open on Friday, and continued to grind sideways after that.
The EURUSD pair had a very volatile session on Wednesday, as we are trying to front run the European Union quantitative easing situation.