FOREX TRADING

From trough to peak (March 10 – August 5), the Cable British Pound appreciated by a whopping 25%, its strongest performance in such a short period of time since 1985. The Pound has fallen mightily since then, and most factors point to a continued decline.

On nearly every front, the Pound is being buried under a mound of bad news. UK economy is presently one of the weakest in the world, particularly compared to other industrialized countries; on a quarterly basis, UK economy is contracting at the fastest rate in over 60 years. Forecasts for UK economic growth are commensurately dismal: “Median estimates in Bloomberg economist surveys see the U.S. shrinking 2.6 percent in 2009 and expanding 2.2 percent in 2010, compared with a 4.1 percent contraction followed by 0.9 percent growth in the U.K.” (more…)

Japan came out from recession in the second quarter, but much of this was due to government spending with private-sector demand continuing to dwindle. Equities in the Asian country took notice, shedding 2.57% at 00:07 EST. Euro price action lost for a second day, touching upward sloping support dating back to May 6.

Key Overnight Developments

• Japan Comes Out From Recession, But Private Spending Contracts
• Foreign Direct Investment Into China Worse-Than-Expected (more…)