The British pound was strongly negatively impacted by the lost confidence of the banking sector in UK which had huge loses yesterday driving the FTSEE 100 down by .93% after a strong opening amid the next stimulation package which had not the trust of the stock holders specially over the short term pushing their banking stocks lower in what can you call a new pessimism wave could contain the current market sentiment. The cable could break lower than 1.435 this time and now the expectations of further MPC close and massive interest rate cuts can put pressure on the British pound while we wait today for the release of UK inflation rates of December which are expected to come lower strongly on the recession contraction impact and the declines of the energy and commodities prices. The CPI is waited to be 2.7% y/y from 4.1% a month earlier and the core RPI figure is expected to come lower too to -1% from -.4%in November .
The worries about the negative impact of the financial sector on the real economy are growing faster in UK which can cause a decline of the business spending and the consuming spending. We wait later this week for the UK Labor report which can carry further sings of the business contractions and expected declines of the consuming spending. December jobless claimant is expected to be 85k from 75k in November and the unemployment rate is expected to grow by 6.1% y/y from 6% in November and further weaker data can show that there is no bottoming out soon which can effect negatively on the British pound. The cable was moving in a side way and its upper band was at 1.5722 and it has consisted after the Fed's recent interest rate cut to .25% and the lower band was at 1.435 and breaking it could put more pressure on the cable to break 1.4. Best wishes FX Consultant Walid Salah El Din E-Mail: m...@fx-recommends.com http://www.fx-recommends.com --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "dubaicityliving.com - The Dubai Property Website" group. To post to this group, send email to dubaicityliving@googlegroups.com To unsubscribe from this group, send email to dubaicityliving+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/dubaicityliving?hl=en-GB -~----------~----~----~----~------~----~------~--~---
