Last week’s surprise QE by the Bank of England gave the pound a bit of a pounding, however it seems to be holding its own against the euro, and could well head higher if, as expected, the ECB cuts rates. CMC Markets spread on euro-sterling is £0.87035-£0.87044.
New Zealand has just announced that its budget deficit was wider than forecast, which caused the Kiwi dollar to fall against the US dollar. However, over the past week or so the pair has been trading in a bullish channel, which has support at around $0.7777. Capital Spreads quotes $0.7794-$0.7799.
The euro has been riding out the storm recently but euro-dollar’s bounce from the $1.3200 area back to $1.3700 looks to have met some serious resistance. As long as the EU politicians keep delaying their announcement as to exactly what the plans are to recapitalise Europe’s banks, gains for the euro will probably be hard to come by. Capital Spreads quotes $1.3605-$1.3606 for euro-dollar.