GBP/USD---- TO BREACH 1.6500 NEAR TERM ??

• As expected from the good UK Q3 GDP data, the BoE took no further steps towards more stimulus.

• This week’s inflation report includes BoE forecasts for inflation and growth for the next 2 years that take into account anticipated austerity measures including deep spending cuts and a rise in VAT. In the prior August Inflation report, the BoE predicted inflation for 2013 between 1-2%, indicating that the Bank anticipated deflation and was thus leaning towards new stimulus.

• However growth surprised to the upside in the third quarter and commodity prices have risen – the oil price is up 20% in the last three months. If future inflation expectations are revised higher on Tuesday then chances for new QE drop further, which would likely spark a further GBPUSD rally to 1.63 or even a challenge of 2009 highs around 1.65.
H4 Chart GBP/USD

Weekly Chart GBP/USD

On the H4 CHART, breaching the Pivot at 1.6213  may expose this currency pair towards  1.6162(R1) and 1.6293 (R2 )., follows by the possible recent high at 1.6500.
However, breaking the strong trend line Support  near 1.6000 may send this currency pair below 1.5865 (23.6% Fibo Retr.), or below the Ichimoku Cloud Bottom Support @1.5868 on H4 Chart).

NZD/USD---Will it hit 0.8250 near terms ?

Upcoming Event/News ---       NZD- Reserve Bank of New Zealand Financial Stability Report, an assessment on current and future economic conditions and inflation, Tues., Nov. 9, 4:00 pm, ET.

It would be interesting to see if expectations of rising inflationary pressures were the reason why the RBNZ officials kept the door open to a potential hike at their December meeting or into Q1 2011.


The following are driving force for the Nzd..:-

• Q3 jobs report beat boosts NZD
• Hawkish RBNZ comments feed rate increase expectations, as FinMin English expects higher GDP (3%), rates could go from current 3% to 3.50-3.75%
H4 Chart NZD/USD

Daily Chart NZD/USD

Technically, Nzd/Usd is bullish on longer term(in line with strong fundamentals) but may retrace slightly to near 0.7875(S2) and 0.7839 near term.
So Buying up (Long) on dips is the best Strategy for this currency Pair. Lifting Above 0.7990 may expose 0.8225  level which will be the 3 Year peak.

EURO/USD ---Heading towards 1.4500 ??

USD stabilizes after US jobs growth outpaced expectations in October along with +110K in upward revisions for September and August


Non-farm payrolls, rose 151K in Oct from a revised -41K (prev -95K) in September and a revised -1K (prev -57K) in August. Unemployment remained at 9.6% for the 3rd consecutive month.


 Irish/Greek/Spanish 10 year spreads rose 20-25% relative to Germany for the past two weeks.


 But the euro can no longer sustain those highs solely on the back of the Fed asset purchases, while shrugging the ensuing widening in corporate spreads. Irelands ambitious new budget (yet to be approved in parliament) aims at cutting the deficit to 9.25%-9.5% of GDP in 2011 from the current 11.9%


H4 Chart Euro/Usd

Technically,  1.400 was sustained by last week's Closing, (the Support 3 ) on H4 chart,and the 200 SMA -on weekly chart is 1.3950.,resulting in  the Renewed surging upward near 1.4300, and 1.4450 Resistance cannot be discarded foe upcoming week.


However, any  movement below 1.3950 (200-week SMA) shall signal a reversal towards 1.3880 (Ichimoku Cloud to Resistance on H4), or 1.3862, being the 23.6 Fibo Retr on H4)


Weekly Chart Euro/Usd