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Sterling rises vs. dollar, following the euro's gains as the economy stabilizes
The GBP/USD is currently trading at $1.4585 as of 20:22pm, London-Time, with a bullish trendTammy Wally 
28 May 2010
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| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
|---|---|---|---|---|
Resistance | 1.2737(M) 1.2673(M) 1.2630(M) | 91.88(M) 91.47(M) 91.05(M) | 1.4710(M) 1.4640(M) 1.4608(M) | 1.1740(M) 1.1720(M) 1.1696(M) |
Support | 1.2143(M) 1.2135(M) 1.2035(M) | 90.20(M) 89.81(M) 89.26(M) | 1.4410(M) 1.4374(M) 1.4260(M) | 1.1490(M) 1.1450(M) 1.1268(M) |
The British pound rose against the dollar on Thursday, tracking gains by the euro on the back of short-covering and after China soothed market concerns that it may be avoiding euro zone assets. The euro rose after a Chinese government official gave assurances that China remains committed to its long-standing goal of diversifying its foreign exchange reserves. Separately, the head of China's $300 billion sovereign wealth fund, China Investment Corp, told Xinhua news agency in an interview that the Greek debt crisis will not have a big impact on China's overseas investments. This helped to tame risk aversion in financial markets and allowed equities to push higher, though analysts said sentiment remained fragile.In the absence of any significant news out of the UK, the pound tracked developments elsewhere, gaining versus the dollar but giving back some of the previous day's gains against the euro. The GBP/USD is currently trading at $1.4585 as of 20:22pm, London-Time, with a bullish trend.
The euro increased for the first time in four days amid speculation that concern about the effect of the currency’s almost 14 percent decline versus the dollar this year on the region’s growth is overstated. The euro rose the most in more than two weeks versus the yen after China’s foreign-exchange regulator affirmed its commitment to investing in Europe, damping concern large investors may flee the common currency. The euro advanced versus the greenback as China’s foreign- exchange regulator affirmed its commitment to investing in Europe, damping concern large investors may flee the common currency. China’s State Administration of Foreign Exchange, or SAFE, which manages China’s $2.4 trillion of foreign-exchange reserves, the world’s largest, said in its statement that “the media report that SAFE is reviewing its euro holdings was groundless,” without specifying the media to which it was referring. The EUR/USD is currently trading at $1.2369 as of 20:50pm, London-Time, with a bullish trend.
Canada’s dollar gained for the first time in four days as concern eased that Europe’s debt turmoil will worsen, pushing stocks higher and boosting bets Bank of Canada Governor Mark Carney will raise interest rates next week. “Even if he doesn’t hike, his comments will be hawkish,” Firas Askari, head currency trader in Toronto at Bank of Montreal, Canada’s fourth-largest lender, said by e-mail, referring to the statement from Carney due June 1. “The chances are fifty-fifty, as the situation is fluid.” The USD/CAD is currently trading at 1.0486 as of 21:00pm, London-Time, with a bearish trend.
Finotec Analysis Team
28 May 2010
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Today's Economic Events
Time  |
Event |
Currency/Country
|
Period | Previous | Forecast |
Significance
|
Actual | |
|---|---|---|---|---|---|---|---|---|
| 28-05-2010 13:55 | Univ. of Mich. Consumer Confidence Index | United States | 72.2 | 73.5 |  | 73.6 | ||
| 28-05-2010 13:45 | Chicago PMI | United States | 63.8 | 62.1 | | 59.7 | ||
| 28-05-2010 13:30 | Current Account Balance - BoP | CAD/Canada | -9.8 | | ||||
| 28-05-2010 12:30 | Personal Income (M-o-M) | United States | Monthly | 0.4 | 0.5 | | 0.4 | |
| 28-05-2010 12:30 | Personal Spending (M-o-M) | United States | Monthly | 0.6 | 0.3 | | 0.0 | |
| 28-05-2010 12:30 | Personal Consumption Expenditure Deflator (M-o-M) | United States | Monthly | 0.1 | 0.1 | | 0.0 | |
| 28-05-2010 12:30 | Personal Consumption Expenditure Deflator (Y-o-Y) | United States | Yearly | 2.0 | 1.9 |  | 2.0 | |
| 28-05-2010 12:30 | Core PCE Deflator (M-o-M) | United States | Monthly | 0.1 | 0.1 | | 0.1 | |
| 28-05-2010 12:30 | Core PCE Deflator (Y-o-Y) | United States | Yearly | 1.3 | 1.1 | | 1.2 | |
| 28-05-2010 09:30 | KOF Swiss Leading Indicator | Switzerland | 2.05 | 2.03 | | 2.16 | ||
| 28-05-2010 06:00 | Import Price Index (M-o-M) | Germany | Monthly | 1.7 | 1.5 | | 2.0 | |
| 28-05-2010 06:00 | Import Price Index (Y-o-Y) | Germany | Yearly | 5.0 | 7.1 | | 7.9 | |
| 28-05-2010 06:00 | Nationwide House Prices (M-o-M) | UK | Monthly | 1.1 | 0.3 | | 0.5 | |
| 28-05-2010 06:00 | Nationwide House Prices (NSA) (Y-o-Y) | UK | Yearly | 10.5 | 9.6 | | 9.8 | |
| 28-05-2010 03:00 | Official Foreign Reserves | NZ$/New Zealand | 23.46 | | ||||
| 28-05-2010 03:00 | M3 Money Supply (Y-o-Y) | New Zealand | Yearly | -3.5 | |
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