GBP/USD Daily Fundamental Analysis for May 23, 2011
With no fundamentals from the UK and US, the pair may witness calm movements on Monday trading. Fears regarding the outlook of the British economy may push the pair to the downside, where on the other hand there are some worries that the Fed may keep lose monetary policy for a while to boost recovery.
Consequently, the outlook for the pair remains to the downside as the end of the US $600 billion bond-purchase program in June may lower the supply of dollar from markets and thereby give support to the green currency.
USD/CAD Technical Analysis for May 23, 2011
The USD/CAD pair fell, and then rose later in Friday trading as the market began to fear issues in Europe. While this isn’t necessary an indictment on the Canadian dollar, it was more a symptom of people simply wanting to buy the USD in general. The 0.97 area is still a massive cluster, and should be watched. For the time being, we can’t help but notice how much trouble this pair has staying above it for any length of time. If we break higher, we will look to sell again near parity. If we break lower – the trend continues and we are short. 0.97 is becoming more and more important in our eyes now.
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