US housing market is still very poor and there are big worries about consumer spending. While the US economy is not in the doldrums when you compare this currency to other, US fundamentals look poor.
However; after the NFP we have just seen and the topping pattern that is forming on the GBPUSD, i think we will see some pull back and the USD gaining some of its lost ground. First we need to see a break of structure before i would step infront of this bull train but after this i see GBPUSD falling back to 2.0460 to 2.0500.
I still see the GBPUSD bullish in the medium to long term. Oil denominated in USD is putting pressure on the USD and also long term central bank diversification will maintain this bullish trend in the longer term.
China must be putting some of its vast reserves into other currencies and i hardly see the fed wanting to put any major halt on this USD decline with all that it can do to revive a stumbling US manufacturing base. Not only this, when you consider that the Chinese administration are concerned that their economy is over heating, a falling USD does not help their cause, could this bring added pressure on the Chinese to revalue the Yuan once again? Something Paulson et al would like to see.
Thanks Charlie
However; after the NFP we have just seen and the topping pattern that is forming on the GBPUSD, i think we will see some pull back and the USD gaining some of its lost ground. First we need to see a break of structure before i would step infront of this bull train but after this i see GBPUSD falling back to 2.0460 to 2.0500.
I still see the GBPUSD bullish in the medium to long term. Oil denominated in USD is putting pressure on the USD and also long term central bank diversification will maintain this bullish trend in the longer term.
China must be putting some of its vast reserves into other currencies and i hardly see the fed wanting to put any major halt on this USD decline with all that it can do to revive a stumbling US manufacturing base. Not only this, when you consider that the Chinese administration are concerned that their economy is over heating, a falling USD does not help their cause, could this bring added pressure on the Chinese to revalue the Yuan once again? Something Paulson et al would like to see.
Thanks Charlie