Finotec News Archive - June 25 2009
The Pound falls against the Dollar and the Euro after King’s comments
During his testimony to the UK parliament, King also warned that a withdrawal of economic stimulus too quickly may create the risk of a renewed downturnTammy Wally 
25 June 2009
Print this article
Subscribe to RSS
| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
|---|---|---|---|---|
Resistance | 1.4180 1.4140 1.4005 | 97.20 97.00 96.75 | 1.6665 1.6625 1.6480 | 1.1165 1.1055 1.1030 |
Support | 1.3920 1.3890 1.3825 | 95.90 94.90 94.45 | 1.6325 1.6270 1.6210 | 1.0795 1.0635 1.0590 |
The British Pound fell against the dollar and the euro on Wednesday after Bank of England Governor Mervyn King said he had serious concerns about how quickly the UK economy may recover. During his testimony to the UK parliament, King also warned that a withdrawal of economic stimulus too quickly may create the risk of a renewed downturn, while keeping stimulus for too long may create inflation. BOE chief economist Spencer Dale said on Tuesday it was too soon to judge the effectiveness of the central bank's programme to buy a target of 125 billion pounds in UK assets to help boost the economy, but that early signs were positive. The GBP/USD is currently trading at $1.6330 as of 8:47am, London Time.
The greenback may decline against the Yen to 92.50 yen in two weeks after it fell below so- called support at 95.52 yen, Bank of Tokyo-Mitsubishi UFJ Lt. said, citing trading patterns. “The dollar has weakened below the 200-day moving average of 96.14,” which signals it may keep falling, Hashimoto said. The next support will be its May 22 low of 93.86, he said. Should it fall below that level, the greenback may then weaken to around 92.50, he said. Support at 95.52 yen represents the dollar’s low of June 17, according to Masashi Hashimoto, a senior analyst in Tokyo at the unit of Japan’s largest lender. The fact that the dollar stayed below its five-day moving average of 95.92 yen for a third day also indicates the greenback may extend losses versus the yen, Hashimoto said. The USD/JPY is currently trading at 96.45 as of 8:52am, London Time.
The Canadian Dollar lost some momentum after the Federal Reserve left its $1.75 trillion bond purchase program unchanged, boosting the appeal of the greenback as a refuge. The Loony strengthened earlier after the Organization for Economic Cooperation and Development boosted its forecast for the nation’s economic growth and a U.S. government report showing an unexpected jump in durable-goods orders sent North American stocks climbing. Canada’s currency will strengthen to C$1.13 against the U.S. dollar by year-end, according to the median forecast in a Bloomberg News survey of 37 economists and analysts. The USD/CAD is currently trading at 1.1550 as of 9:00am, London Time.
Finotec Analysis Team
25 June 2009
The market review and analysis content on this site, including news, quotes, data and other information, is provided for your personal information only, and is not intended as a recommendation for trading purposes. Content on this site does not provide any form of advice (investment, tax, legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments or products. Finotec does not provide investment advice or recommendations to buy or sell securities.
Select Your Time Zone
Today's Economic Events
Time  |
Event |
Currency/Country
|
Period | Previous | Forecast |
Significance
|
Actual | |
|---|---|---|---|---|---|---|---|---|
| 25-06-2009 23:50 | All Industry Activity Index (M-o-M) | Japan | Monthly | -2.4 |  | |||
| 25-06-2009 23:30 | Tokyo CPI (Y-o-Y) | Japan | Yearly | -0.8 | -1.3 | | ||
| 25-06-2009 23:30 | Tokyo Core CPI (Y-o-Y) | Japan | Yearly | -0.9 | -0.9 | | ||
| 25-06-2009 23:30 | CPI (Y-o-Y) | Japan | Yearly | -0.1 | -1.1 |  | ||
| 25-06-2009 23:30 | Core CPI (Y-o-Y) | Japan | Yearly | -0.4 | -0.5 | | ||
| 25-06-2009 14:30 | EIA Natural Gas Inventory (Cubic Feet) | United States | 2557 | | ||||
| 25-06-2009 12:30 | GDP Annualised | United States | -6.3 | -5.7 | | -5.5 | ||
| 25-06-2009 12:30 | Core Personal Consumption Expenditure (Q-o-Q) | United States | Quarterly | 1.5 |  | |||
| 25-06-2009 12:30 | Initial Jobless Claims | United States | 608 | | ||||
| 25-06-2009 12:30 | Continuing Claims | United States | 6687 | | ||||
| 25-06-2009 12:30 | Personal Consumption Expenditure (Q-o-Q) | United States | Quarterly | 1.5 | 1.5 | | 1.4 | |
| 25-06-2009 12:30 | GDP (Y-o-Y) | United States | Yearly | -0.8 | | |||
| 25-06-2009 09:00 | Industrial New Orders (M-o-M) | Eurozone | Monthly | -0.8 | | |||
| 25-06-2009 09:00 | Industrial New Orders (Y-o-Y) | Eurozone | Yearly | -26.9 | -33.9 | | ||
| 25-06-2009 00:00 | Conference Board Leading Index | Australia | 0.4 | |