By Forex Signs, Inc.
As the British Pound continued its gain against the US Dollar, economists are surprised that this is happening considering that the UK economic reports yielded different figures. Retail sales went up 0.5% in October, which is about the same as its previous figure. This could be good in the long run considering jobless claims fell 3.7K for last month. Public sector borrowing increased to 9.8B last month, which is a record high for October. Though this signals a mixed reaction to traders, one positive thing going for the Pound is the growth of CBI industrial order balance which rose to -15 from last month’s -28. This could signal a growth in British economy as there is demand for their export.
For the upcoming European session, BOE Deputy Governor Paul Tucker is set to deliver a speech at the European Banking Congress in Frankfurt, where he may discuss the possible involvement of Britain in helping the EU’s proposed bailout plan for troubled Ireland. There would be no other economic data scheduled for release which could mean the Pound will trade on the market’s appetite for the US Dollar.
Core Driver of the EU’s Industry
During the previous session, the Euro was influenced to move along the consolidation pattern between the resistance level at 114.12 and support level at 113.34. As a response to the European Union’s agreement to set up a so-called permanent crisis resolution mechanism, which would ensure that private investors will shoulder some of the pain if the euro zone government runs into trouble after 2013.
Momentarily, clear conditions must first be set up in the Euro zone for the sake of the investors and to avoid uncertainties in market.
So far, the Euro is expected to take chances in the bearish channel as risk sentiments seems to weaken along with the overall market standing.
Existing scenarios in the market had most likely been the core driver of the industry’s health; sudden changes in market may also tend to drive the euro’s value as well as the risk sentiments to distinct adjustments.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
