Gbp/usd

[DannyBly]

BOE will announce their interest rate decision this week - the market is expecting rates to be lowered by 25bp. The economy has been suffering with a weakening housing market - I'm expecting negative fundamental data to put pressure on the GBP near term...

Having said that I just got long for a short term trade - the 5 period EMA crossed over the 10 period EMA on the 15 minute chart and there is bullish confirmation from the oscillators...

 

[grantx]

Danny,

There may well be a 25-point cut but don’t be too surprised if there isn’t.

Like the ECB, the BOE mandate is principally that of controlling inflation, as opposed to the Fed’s dual mandate of controlling growth and inflation.

Governor Mervyn King (more a hawk than a dove) was re-elected last week to a second three-year term. This was despite his criticism of the government as being in paralysis, and the flak he received (unjustified in my opinion) regarding his handling of the bank, Northern Rock. However, he does command broad respect. Further, another hawk (Andrew Sentance) was re-elected to the rate-setting committee.
Hope your trade goes your way.

Grant.