GBP-USD trading prediction january 24 2012

forex trading outlook today - GBP-USD trading prediction january 24 2012 : Bank of England (BOE) Governor Mervyn King (July 2003 – June 2013) is to speak. As head of the BOE’s Monetary Policy Committee (MPC) which controls short term interest rates, King has more influence over sterling’s value than any other person. Traders scrutinize his public engagements for clues regarding future monetary policy. His comments may spark a short-term positive or negative trend.

Analysis and Recommendations:

The GBP/USD is currently trading at 1.5586. The pair opened at 1.5565 reached a high of 1.56.02 and have dropped down to the median point holding there.

So we have the USD falling on against all trading partners as a deal with Greece looks like it might be taking form.

Again, there have been promises of deal with creditors in Greece, but at this writing it is not clear if there is a deal or isn’t a deal, but the EU leadership seems to think that a deal is doable.

IMF Christine Lagarde said euro zone governments should incorporate the region’s exiting bailout fund, the European Financial Stability Fund, into the European Stability Mechanism, increasing the size of the permanent bailout fund in order to restore investor confidence in the region.
The pair will continue to hold tight as there is little to encourage much action elsewhere.

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