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The BoE is expected to keep their benchmark interest rate at 0.50% as remaining downside risks to growth will most likely lead the central bank standing pat until the end of 2009. Fundamental Outlook The BoE is expected to keep their benchmark interest rate at 0.50% as remaining downside risks to growth will most likely lead the central bank standing pat until the end of 2009. Although, we are seeing global leaders at the G-8 meeting talk about developing an exit strategy from the current easing cycle, there is a consensus that it is still too soon to consider executing it.

Student’s Question: When a currency pair is in a trend, either up or down, what is a strategy that a trader could use?? Thanks Power Course Instructor’s Response: A very straightforward trading plan in an uptrend would be to buy at support or buy a breakout above resistance…see the chart below for a visual. Keep in mind that when a currency pair is in an uptrend, the higher probability trades will be in the direction of that bullish trend.? With that in mind, a trader could wait for a pullback to the support line and, provided that a candle does not close below that support line, a long position (buy) can be taken with a stop below the support line.

Current Yesterday USD 0.25125 0.25875 GBP 0.54375 0.54375 EUR 0.28125 0.43250 JPY 0.12500 0.13125 CHF 0.08333 0.08500 AUD 3.05250 3.03000 CAD 0.17833 0.18333 NZD 2.82500 2.42500

Australia’s June Unemployment Rate rose to the highest level since October 2003, but also rose to a rate just shy of that which was expected, 5.8% vs 5.9%.

Australia’s Consumer Inflation Expectations rose to a 7-month high of 3.2% for July, according to the Melbourne Institute’s survey. Indeed, rising oil costs in recent months may have contributed to worries that the price of goods will rise in the coming month. Three of the last four months saw consumer expectations of such upward pressure rise

The US dollar has appreciated steadily against most of its major counterparts this past week (the notable exception being USDJPY). However, the greenback’s rise has been conspicuously reserved.

The Australian dollar was hit hard due to the sharp drops we saw in FX carry trades, and the currency will face event risk overnight. The Australian labor markets started to deteriorate during the second half of 2008, and this is likely to continue through 2009. While we did see a surprise improvement in April, the June results are projected to show that the unemployment rate jumped up to a nearly 6-year high of 5.9 percent from 5.7 percent while the net employment change is anticipated to fall by 20,000

All of the economic data for the week has been released and the final session of trade is expected to be a boring one, with the US holiday weekend kicking off and the equity markets closed. The commodity bloc currencies have outperformed on the lightened session, while Sterling lags

A daily video highlighting technical developments in the overnight session of trade with DailyFX Technical Currency Analyst Joel Kruger.

A daily video highlighting technical developments in the overnight session of trade with DailyFX Technical Currency Analyst Joel Kruger.