Cable Update (GBPUSD)

but it look like it already break out of triangle to upside
(maybe not)

bankofengland.co.uk

yes

and it says the queen is expecting quintuplets

5702 down in positive

Thank you for the link!!

hi kindly update ur opinion about inflation report and thanx for the link

Closed short, + 4p but mine

Hello Guys,

My Entry
http://www.forexfactory.com/showthre...30#post3467530


trade your charts & good Luck

You can also use the reaction to news to guage what the overall sentiment is (if you cant read a chart I mean) So, if news is very good or better than expected and a currency doesnt immediately strengthen, you can see that sentiment is bearish. On the other hand, if news is bad and not much happens, sentiment is bullish...

here its

London (MNI) - The following is the full text of Bank of England

Governor Mervyn King`s letter to Chancellor of the Exchequer Alistair

Darling explaining January CPI`s overshoot of the 2.0% target.

January CPI came in at 3.5% on the year. King`s letter is

dated Monday February 15.

"Tomorrow the Office for National Statistics (ONS) will publish

data showing that CPI inflation rose to 3.5% in January. That is more

than one percentage point above the target. As a result I am writing an

open letter to you on behalf of the MPC. As requested by the National

Statistician in order to avoid conflict with the release of the

official CPI statistic the Bank of England will publish this open

letter at 10:30am tomorrow.

Our remit specifies that we should explain why inflation has moved

away from the target the period within which we expect inflation to

return to the target the policy action that the Committee is taking to

deal with it and how this approach meets the Government`s monetary

policy objectives.

Why has inflation moved away from the target?

In the medium term inflation is determined by the balance of money

spending and the supply capacity in the economy. Money spending in

turn is influenced by monetary policy allowing the MPC to meet the

inflation target. But in the short run other factors which cannot

immediately be offset by monetary policy can cause measured inflation

to move around. Over the past three years inflation has been much more

volatile than in the preceding ten years reflecting an increase in size

and frequency of these short-run factors.

Three such short-run factors have driven the current measured rate

of inflation up. First the restoration of the standard rate of VAT to

17.5% is raising prices relative to a year ago. Second over the past

year oil prices have risen by around 70%. That is pushing up

petrol-price inflation significantly which in turn is raising overall

CPI inflation. Third although the exchange rate has been broadly stable

over the past year the effects of the sharp depreciation of sterling in

2007 and 2008 are continuing to feed through to consumer prices.

Over what period does the MPC expect inflation to return to the

target?

This is the third episode when inflation has moved above the target

by more than one percentage point. As was the case on previous

occasions the Committee expects this to be a temporary deviation of

inflation from the target as was made clear in last week`s Inflation

Report.
2/16/2010 5:37:35 AM

Full Text

BOE King Open Letter On CPI Overshoot

2 of 3
The direct effect of the short-run factors on inflation should be

only temporary. Thereafter inflation will be determined by the growth

rate of nominal spending relative to the supply capacity of the economy.

Nominal spending fell significantly during much of the previous year

although it bounced back somewhat in the third quarter. That weakness in

spending has created a substantial margin of spare capacity within the

economy. The Committee expects that will bear down on inflationary

pressures over time. The effects are already evident to some degree in

the labour market where pay growth has been weak - the average weekly

earnings measure of pay has increased by around 1% over the past year.

And intelligence from the Bank`s Agents suggests that pay growth in the

non-financial sector is likely to remain subdued in the period ahead.

The MPC`s latest projections published last week in the February

Inflation Report suggest that although it is likely to remain high

over the next few months inflation is more likely than not to fall back

to the target in the second half of this year as the short-run factors

wane and the influence of spare capacity builds. Thereafter on the

assumption that Bank Rate follows a path implied by market interest

rates and that the stock of purchased assets financed by the issuance

of central bank reserves remains at 200 billion throughout the

forecast period the Committee judged that inflation was more likely

than not to move below the 2% target for a period. By the end of the

three-year forecast horizon on that same monetary policy assumption

the Committee judged that the risks to the inflation outlook relative to

the target were broadly balanced.

What policy action are we taking?

Although inflation is temporarily above the target the latest

Inflation Report forecast suggests that the underlying pressures are to

the downside. The Committee has taken unprecedented action to offset

these downside pressures ensuring that the medium-term outlook for

inflation remains consistent with the 2% target. Bank Rate has been cut

to 0.5% and the Committee has embarked on a 200 billion asset purchase

programme to inject extra money into the economy thereby raising asset

prices and boosting nominal spending. At its February meeting the

Committee judged that it was appropriate to leave the stance of monetary

policy unchanged. It is important to emphasise that the effects of the

money-financed asset purchases will persist. That together with the low

level of Bank Rate will continue to provide a substantial boost to

nominal spending for some time to come.

The Committee is committed to taking whatever actions are necessary

to ensure that the outlook is for inflation to remain in line with the

2% target. It will continue to monitor the appropriate scale of the

asset purchase programme and further purchases would be made should the

outlook warrant them. Equally if at some point in the future the

medium-term outlook for inflation threatened to rise above the 2%

target the Committee would tighten monetary policy.

How does this approach meet the Government`s monetary policy

objectives?

The Monetary Policy Committee remains determined to set monetary

policy in order to keep inflation close to the 2% target in the medium

term thereby supporting growth and employment. Price stability as your

remit to us states is "a precondition for... high and stable levels of

growth and employment". By ensuring price stability in the medium term

the MPC will make its most effective contribution to economic

performance more generally. I am copying this letter to the Chairman of
Prepared by: FX Solutions UK Park House 16 Finsbury Circus, London EC2M 7EB
3 of 3
the Treasury Committee through which we are accountable to Parliament

and will place it on the Bank of England`s website for public

dissemination.

-

Haste Makes Waste !

For all the news, it's still moved 30 pips today

anyone able to pick out any key points?

seems bank rate and monetary policy are to remain unchanged...

Hi forexlion,

I need your assistance, about Elliott Wave Indi in My Post #199520

And I saw you have experience with Your Post #186245
Would you like give explanations, how to use & run Elliot in MT4 ??

I appreciate you. Thank you...


Best Regard,


Tsar

Good Point Was 724 That I Did

Mine is DP 07.00 am GMT + 7 ---> 1.5664 (1.5647 - 1.5667) vs H1/H4 --> Easy to understood hold above it uptrend , hold below it downtrend for the current trading day !

Support failure1.5630 - 1.5587 - 1.5532, resistant failure 1.5741 !

Currently she moves at the 1.5680 area, just wacthed when touches 1.5647 - 1.5667 ---> bounced or broken on H4 ! If bounced I reckon to close the short, otherwise hold !

did you use any other analysis apart from the harmonic pattern?

Pair is headed towards 1.5770, the investors that are resistant to the risks are likely to open short positions directly from current levels. However .... We are in a downward channel, and therefore the inertia bullish tone may arise in dealing with the level of EMA. Here and the objectives already drawn even in the region 1.6 and shigher, 1.6042.

Excellent Post that mate!!!

I think everything is relative and we (the traders) need to keep that in mind as it keeps our approach very flexible. Different people are looking at the same thing from different angles, different views, different knowledge, different tools and different mindset and goals, hence the difference of opinion! So we should always look at the things in their right context and perspective in order to better understand and interpret what others are looking at and saying!!!

Keep Pipping Guyz!!!

hi
friends i m long in cable since 1.5900 still holding position kindly give ur expert opinion.thanx