The Yen Slumps further!

Friday, December 21, 2007
Hey all,

I have been on a forex books posting spree for quite a while. Now, going back to whats actually happening in our Fx Market, The yen has suffered a major setback against all major currencies on Friday trading session. The greenback managed its best against the Yen since the 7th of November.

Sterling Goes in deep waters

The sterling continued to drift lower, falling to a record low versus the euro at 0.7254 as market sentiment anticipates the increased likelihood for additional BoE rate cuts in the coming year. With recent economic data from the UK remaining soft, combined with dovish commentary from the BoE – we expect the Bank to cut rates by another 25-basis point in January and possibility for further easing in the first half.

Retail sales were largely unchanged at 4.4% y/y, while slightly higher on the monthly reading to 0.4%.

Now, focussing on more statistics

Cable holds steady near 1.9830, with support seen at 1.98, backed by 1.9765 and 1.9720. Additional floors are eyed at 1.97, followed by 1.9650 and 1.96. On the upside, resistance begins at 1.9875, followed by 1.99 and 1.9930. Subsequent ceilings will emerge at 1.9960 and 2.

Figures and statistics supported by forexnews

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