Sterling pulls back after attempted rally in currency tradingThe U.K. pound remains under pressure in forex trading on the currency market today. The sterling attempted a rally against the U.S. dollar in currency trading earlier, but has been falling back.
One of the fears now is that inflation is falling, and that deflation could be the next hurdle faced by the British economy. Interest rate cuts are in the works, though, and that should help keep deflation at bay.
Resistance now seems to have formed about the $1.50 level for the U.K. (more…)
Sterling continues to be pounded in currency tradingThe U.K. pound has dropped below $1.50 in forex trading on the currency market. The sterling continues to be pounded in currency trading as the economic situation continues to worsen.
Mervyn King, the governor of the Bank of England, has said that Britain is facing its worst economic downturn in 30 years. There is speculation that the interest rate cuts, started recently to stimulate the economy, were too late in coming.
However, the Bank of England is now committed (more…)
Currency trading with the euroThe euro is dropping in forex trading on the currency market as recession becomes a reality. Currency trading should consider that the euro zone economy is sliding into a recession, and that is affecting the currency against the dollar, which is receiving some support due to optimism that the economy may turn around.
In response to the euro zone recession, the European Central Bank is expected to cut interest rates, in the hopes of stimulating the economy.
See AlsoEuro in Forex Trading (more…)
FX market reacts to China’s planChina, which is expected to become the world’s next economic superpower, has just announced its own economic stimulus package. The Chinese government has announced that over the next two years, it will inject $586 billion into its own economy.
This is the largest stimulus package to date (the $700 billion bailout, apparently, doesn’t count as "stimulus"; it is seen as "rescue"), dwarfing packages put forth be the U.S., Japan and Germany. The Chinese package dwarfs all them combined. (more…)
