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Shivani Financial GBP/USD short term bottom seems 5478-5383 and top 6210-42. Shivani Financial EUR/USD short term bottom seems 2580-2618 and top 3510. Shivani Financial USD seems to weaken this quarter with GBP target of 6330 and EUR of 3250 if talks of QE3 takes place and euro area resolution policies implemented without new story. Shivani FinancialGold has taken correction according to our forecast for it to go 1850 by August end.

Wednesday, September 7, 2011

Concerns remain about the state of the UK economy

In the UK, despite last night's speech by the Chancellor reassuring that the UK recovery remains on track despite recent weak data, concerns remain about the state of the UK economy, as evidenced by yesterday's disappointing BRC retail sales numbers. These fears are likely to increase this morning if July manufacturing and industrial production data show further signs of slowing down or contracting further in the case of the industrial production data.

June's industrial production data came in flat on a monthly basis and down 0.3% year on year and though July's number is expected to rise 0.2% the year on year number is expected to slip further to -0.4%. Manufacturing production is set to be slightly more positive improving on a monthly basis from -0.4% to 0%, though the annual figure is expected to slip from 2.1% to 1.9%.

Weak numbers will once more increase the pressure on the Bank of England to embark on more QE at tomorrow's rate meeting, an outcome which at this moment seems unlikely despite some speculation to the contrary.

By
M.Zohaib Gadit
Forex Trading Consultant

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