Cable Update (GBPUSD)

FED'S BERNANKE: CORE INFLATION REMAINS "UNCOMFORTABLY HIGH"
- maintains forecast of mederate economic growth
- inflation expectations appear contained
- core inflation to slow gradually over time
- no spillover yet from housing or manufacturing but homebuilding likely to remain a drag on growth
- rising consumer spending to support economy
- business spending to grow at moderate pace
- subprime problems are likely to be contained
- high resource utilization is key inflation risk
- policy is still data dependent
- uncertainties around outlook have increased

That's what might have triggered the panic across the board

I hope so, March has been a nightmare to trade cable, at least for me...

Do you mean the 2nd of april or second after what release?

In the second Iran releases the troops...

May come out as carry surge instead of majors breakout though.... At least enough not to bring 2.0000 in the horizon as stated.

It may come at the start of the second quarter - April 1 - but last year holidays played quite a role. Look at Easter Monday and Thanksgiving - 2 of the best moves for the year.

Thanks, I was so confused but I thought only the woman was being released?

Market doent see to be in ANY reaction mode now...

FED'S BERNANKE: NO EVIDENCE THAT ECONOMIC EXPANSION MUST "DIE OF OLD AGE"
- risks remain, but does not expect US recession

TREASURY'S PAULSON REITERATES THAT THE U.S. AND WORLD ECONOMIES ARE HEALTHY
- reiterates subprime to have a moderate effect on housing, small effect on the economy

INDICES SLIP AS TRADERS CONTINUE TO RECONCILE SLOWER GROWTH WITH INFLATION EXPECTATIONS
- Dow -95 S&P -9.9 NASDAQ -15.4
- Another weaker than expected durable goods reading set an early tone of lower equity prices and Treasury yields. The weakness was broad based with the only strength being found in the energy complex as April crude futures were up more than 2% on continued tensions regarding Iran. The equity weakness accelerated following the release of Bernanke's testimony before the Congressional Join Economic Committee. The Fed Chairman noted that inflation remains uncomfortably high and housing is likely to remain a drag on growth. Treasury yields have continued lower with the 10-year back below 4.6% while the spread between the long and short end of the curve widens further. There has been no real notable change in the July fed fund futures as it continues to project roughly a 40% chance of a rate cut by mid-year. The Dollar moved lower following the soft durable goods reading and remains in the red. The Yen is seeing some real strength today on initial talk of repatriation trades. The Japanese currency trades up nearly 1% against the Euro, Pound, Franc, Aussie Dollar and the Greenback. Gold has spent the session in positive territory helped by higher crude and continued focus on geo-political tensions.

Dow bouncing after this, Pablo

So are the carries so far.

FED'S BERNANKE IN Q&A SAYS NEUTRAL POLICY WOULD BE ONE OF EQUAL RISKS
- policy is still oriented tward stemming inflation and has not shifted away from inflation bias
- Fed needed more flexibility given the outlook on risks
- there were higher risks on both sides

I see what you mean, cable rallied from April 2nd for 34 days....an interesting number....for +1735 pips...had 11 days with a range > 200 pips...now if only.......

Cable is going to the hell?

I think ... If 4 hour candle close <9631... then cable will be a meeting with zeth in the hole

Cluster of supports from 9630 down to 9570...

Devil will have to wait.

E/U go first

Hearing Citigroup Cuts Q1 Gdp Estimate From 2.8% To 2.0%

oh oh oh oh..... Bernanke takes my pay.... oh oh oh

Super wide SL is advised when this kinda guy speaks... There's always nice whipsaws to chew your account and spit it out, just to retrace towards your (no more) profitable zone.