Pound plunges on the BoE minutes

Submitted by Marcelo Melo on Wed, 22/02/2012 - 16:33
in

Tradervox (Dublin) - Sterling pound stole all the attention during the European and US session after the dovish statement from the Bank of England. 2 Members asked for 75 billion pounds instead of 50 billion pounds. In response to this, the pound was heavily sold off and the pair plunged below 1.5700 levels. It printed a fresh low of 1.5648 and is currently trading near the low at 1.5655, down about 0.78% for the day. The support may be seen at 1.5650 and 1.5600. The resistance may be seen at 1.5730 and 1.5770.

Euro suffered from second disappointing news of Greece downgrade to C from CCC by Fitch after poor PMI earlier in the day and fell on the news. It is currently trading at 1.3233, flat for the day. The support may be seen at 1.3200 and below at 1.3120. The resistance may be seen at 1.3250 and 1.3320 levels.

The USD/CHF pair continues to trade in a narrow range of 30 pips. It is currently trading at 0.9120, virtually flat for the day. The support may be seen at 0.9100 and below at 0.9070. The resistance may be seen at 0.9150 and 0.9200 levels. The downward bias in the pair is still in place even though the US dollar is strengthening against Euro and Pound.

Australian dollar continued its slide against the US dollar in the US session and formed a fresh low of 1.0604. But it has since then come off the low and is currently trading at 1.0630, down about 0.30% for the day. The support may be seen at 1.0610 while the resistance may be seen at 1.0650 and above at 1.0700.

The US dollar is trading against the Japanese Yen above the 80 levels. It formed a fresh high of 80.37 during the US session. It is trading near the 7 month high at 80.30, up about 0.72%. The resistance may be seen at 80.40 while the support may be seen at 80.

The US dollar index is steady above the 79 levels and has printed a new high during the US session at 79.44. It is trading at 79.36.

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