Pound may fall:

Discussion in 'Forex' started by bapunagar, Oct 12, 2006.

  1. The pound closed at $1.87075 against the dollar and it felt as if the pound will continue it's rise today after reports that even though inflation remains a concern for policy makers , there was a rise in house values in the UK . But when the markets opened today , the pound seems to be dangling between $1.8608 and $1.8587, which is pretty low than the expected rate against the dollar.

    I feel that the dollar will do good today keeping the pound down after encouraging signs of rise in retail sales in September increasing the consumer confidence , which may dissuade the Federal Reserve from lowering rates. Hence allowing firmness to dollar and bringing the pound down.
  2. I was short GBP/USD, and was very lucky in being able to get out at the very bottom yesterday. I took a look at my charts and decided I wanted to wait on this position, so I closed it out at 1.8520...very lucky indeed. Not really too sure where this is gonna head from here...will be interesting to see though.