Europes Rate Decision

The housing market is a very weak sector in the UK at the moment. It is widely expected the BoE will cut rates by 25bp today. The ECB on the other hand is expected to keep rates unchanged. President Trichet's press conference will be interesting to gauge where the Euro Zone is heading.

The 25bp and probably even 50bp is factored in the GBPUSD. The EURUSD however is needing some fundamentals push to it out of it's range. Stochastics would be the indicator of choice to use at the moment on this pair to accomodate for the range bound activity. A breakout with entry stop loss technique would be the trigger but until then short term trading is our focus on this pair.

So, mid day today will should be an active period.

Forex Analysts
Javid Shaik & Anne Chapman