25 Jun 2009

GU analysis:
In the UK, Retail sales fell for the second month running in the year to June, following April’s brief respite, the CBI said today (Wednesday). The decline, broadly in line with retailers’ expectations, was no worse than in May however, and less severe than falls recorded between July 2008 and March 2009.

While in the US, Purchase of new homes in the U.S. unexpectedly fell in May as builder discounts failed to keep pace with the foreclosure-driven slump in prices for resales. Sales decreased 0.6 percent to an annual pace of 342,000 after a revised 344,000 rate in April that was lower than previously estimated, the Commerce Department said today in Washington.

The Federal Reserve refrained from increasing its $1.75 trillion bond-purchase program, said the pace of economic contraction is slowing and predicted inflation will remain “subdued for some time.”


Overall, the GBPUSD was a doji, up and down, hitting high at 1.66, then fall to 1.636.

The outlook for today will still be uncertain, without any major push towards any direction.
The only major news today will be at 2030hrs SGT on US on unemplyment claims. But Obama had said that it will hit >10%.

On the technical side, the price movement is still clamp within resistance at 1.67 and support at daily EMA21 at 1.632.

Trend: ? As the squeeze tighten, expect a big breakout, but direction is currently not sure.