9 Nov 2007

1. News: UK interest rate remains at 5.75%. US unemployment rate fall.
Two important news today is on UK and US trade balance. However, the figure release would be more or less as expected. As such, the pressure is for GBP to continue to climb.

2. Stock Market: European market moved sideway yesterday, with US market contiune to take a dip. Stocks extended the previous day's steep losses after Federal Reserve Chairman Ben Bernanke warned that a raft of economic troubles could dent business growth and after Cisco's comments touched off unease about business spending. But buyers moved back in late in the session, apparently thinking the market's selloff had been overdone.

3. Major Currencies: EUR, CHF continune to show strength, with the JPY forming a doji.

4. Technicals: With no reversal in view, GBP seem to be ramping up for another up-wave. A good resistance to hit is at 2.1280. However, on the contrary, CCI(34) showed a overbought case and somewhat and unless CCI pass through the cnetral of the BB, GBP will make a upward trend. Support will be at 2.0960.

5. Personal Assessment: I believe the market will move side and lingers between EMA21 and EMA55 (1 hour chart), after a failure to do so yesterday, before a rebound north. There are no signs of UK intend to weaken the pound nor there is sign of US economy recovery. The northward bound will be abandon should GBP sailed pass 2.0960 and CCI(34) from 1 day chart go below the BB central line.