The value of the dollar continues to sink even in the midst of positive earnings reports and a modest improvement in the level of private company hiring during July.

Sterling got a lift from this morning’s news from the Halifax that house prices were up 0.6% in July, compared to expectations for a fall. The GBP saw six month highs versus the dollar yesterday, rising as high as $1.5968, though many in the market feel that it could face stiff resistance as its approaches the $1.60 level. Versus the euro, sterling remains firm just below the Stg0.83p level. Todays release of PMI which came in below expectations has caused an increase in Short positions against the Pound and we …

The current price movement remains constructive for the pound with cable breaking the 1.5637 level – the 50% Fibonacci of the Aug’09 – May ’10. Analysts are expecting further gains in the short-term, after Sterling broke above its 200-day moving average last week. Therefore, a significant break above $1.5836 would trigger a further upward move towards $1.5970, the highest level in almost six months. Services PMI tomorrow will be the key release of the week for the UK – anything printing 55 or above should see the next leg …

A volatile end to the week both in FX and other asset classes. In the end the closes were ok in terms of EURUSD bouncing back quite significantly from Friday’s intraday low and equities in the U.S. closing unchanged having been down during the session.
Overall the grind continues, accelerated slightly by month end flows on Friday which were primarily purchases of GBP. When we broke above 1.5530 I stated that I thought we would move slowly up to a target of 1.5800-50. EUR/GBP is similar, with GBP quietly …

After a good run of better than expected eurozone data and a shift in risk trends in the financial markets the EUR/USD traded at an 11 week high overnight to touch $1.3004 – a key target point for speculators. It is clear that investors are turning their attention away from Euro-zone soveriegn debt risks and more towards the corncerns that surround the US economic recovery and key fundamental and technical developments accross the markets.
With market sentiment hit by yesterday’s disappointing US consumer confidence report and with this evening’s …

Oil prices are hovering just below $80 per barrel, at around $79 for September crude delivery in Tuesday’s (July 27) early New York Mercantile Exchange trade. Still moving in sync with equities in the big picture, the price of oil is limited by continued reports of sluggish crude demand levels in the US.