News

Sterling gained marginally after the Bank of England held interest rates at 5 percent.

Sterling gained marginally after the Bank of England held interest rates at 5 percent. Since the decision was more or less in keeping with the market expectationsit did not affect on the cable movspanent much.

Meanwhile most of the data from the UK have not been supportive for the view of a span economy. British manufacturing output fell unexpectedly in March at its sharpest rate in six months as a decline in car production led to a retreat after two months of span growth.

The Nationwide building society's consumer confidence index for April fell sharply to 70 from the March reading of 77. This added to the fears regarding the strength of UK economy.

The Halifax house price survey released last week showed the first annual fall in property prices in around a decade. According to the survey prices in the three months to April fell 0.9 percent versus a year ago. Consensus forecast was for a 0.8 percent fall.

Market research firm GfK NOP's monthly consumer confidence barometer fell to 24 in April from 19 in March its lowest level since Novspanber 1992.

Last day in spot trading sterling closed at 1.9547 (1.9537) against the dollar after trading in the range 1.9620 1.9501.

Medium term outlook

Trading below 2.0000 is the sign of weakness. Supports are 1.9800 1.9600 1.9385 resistances are 2.0275 2.0400.

Last day DGBP traded in the range 195.63 194.59 and closed at 194.75.TECHNICAL OUTLOOK (Intra day)

DGBP (June) Bullish above $195.16 bearish below $ 194.62

DATA TO WATCH

2008 May 9

No data Dubai time = GMT + 4 hrs