Cable Update (GBPUSD)

believe half of what you see and none of what you heard, go with what you know.

Cable maintains a positive outlook above 2.0365 support within its interweek range extremes of 2.0250-2.0465, says Royal Bank of Scotland. Bank says be alert to a topside break which will be a trigger for a run on the July 2007 high of 2.0650 with a more aggressive intermonth target seen as 2.1025. Cable now at 2.0373.

i repeat!

believe half of what you see and none of what you heard, go with what you know.

G7

OIL @ 87.10, GOLD 770

noted

weeeeeeeeeeeeeeeeeeeeeeeeeeeeeee !!!!!!!!!!!!!!!!!!!!!!!!!!!!

UK September CPI +0.1% on month versus +0.4% in August, on year +1.8%, unchanged from August's +1.8%. DJN forecast +0.2% on month, +1.9% on year. Core CPI +1.5% on year, its lowest level since October '06, versus +1.8% in August. DJN forecast core CPI +1.7% on year. RPI +0.3% on month in September versus +0.6% in August, +3.9% on year compared with +4.1% a month earlier. DJN forecast RPI +0.4% on month, +4.0% on year.



The numbers should provide reassurance to the Bank of England's Monetary Policy Committee members, and add to the volley of evidence suggesting that U.K. interest rates - at 5.75% - have reached a peak for the current cycle. Gains in the CPI have now been below the BOE's 2% inflation target for three consecutive months.

what a drop, instantly brought me 44 pips, closed transaction and now let's see if a bear trend is set to unfold the instant drop probably was due to 1,8 CPI just shown.

What a long candle on GU 4H...

CPI 1,8% smaller then predicted 1,9% and equal to former 1,8% which from what i learned in my 30 days is that the pound will drop, and it did, after which will slightly rise or maintain level.

Core CPI 1,5% smaller then both 1,8% predicted and former. I believe this is the perfect setup for a bearish trend or a short downtrend, of course, i may be wrong as i play for 1 month, please correct me if i think wrong.

Oct. 16 (Bloomberg) -- The U.S. dollar's weakness is ``unsustainable'' and a rebound in the currency may be sparked by the statement from Group of Seven officials meeting in Washington this weekend, UBS AG said.


we could be witnessing the end of a era !!!!!!!!!

That is a weak CPI LOL....

Minutes tomorrow to add another leg

Morning all...

Ok, so I have closed my short from 2.0424 first target 2.0320 the 61.8 ext as mentioned yesterday. I took another short on the break of 2.0366.
And seeing that it is such a long bear candle, I will to take a counter long of 3 lots at 2.0300 for 60 pips for 2 lots, then let the last 1 lot balance out the other 2 shorts, just in case.

We'll see what happens in NYC

UK inflation risks remain benign and the Bank of England should have a free hand to cut rates by a quarter point at the November monetary policy meeting, says David Brown at Bear Stearns, following the release of the September inflation data. "This should be vindicated by the November quarterly inflation report which should expect inflation to stay close to 2.0% over the next two years," says Brown. The Bank of England should now be switching tack from tightening to easing and away from inflation risks to softer growth concerns, he adds

in a week time Cable may even go down to 20189!
but support at 20320 takes a bit time!

I dont believe Fed would do a rate cut as market expected, or at least some hawkish comment on inflation...... It is Fed 's strategy all the time
check the History book: Japan's recession; 98 world financial crisis;
here is one upcoming.....

However, this time , things changed a bit: Greenspan is no longer the Chairman; everyone is not as comfortable with USD as they were before!

So long term, I go long, but for now, it is definite a short!

An ECB rate hike remains possible, with Eurostat confirming that the euro zone's annual rate of inflation in September was 2.1%, the first move above target in 12 months. As anticipated, rising energy and food prices were major contributors, as were base effects.

DJ

AJ dropped 250 pips and kiss the up trendline then covered 150 until now

this will be a strong week, up and down, im off to bed i will be checking out n.y. open, short is not a sure thing, if i can't get 100+ pips i don't trade.