The cable traded at a high today of 1.6239 but has settled at the end of the trading day near its opening price of 1.6089.
Also lending strength to the Pound and its European counterpart, the EUR, were two speeches on Sunday from Fed Chairman Ben Bernanke and Vice Chairman Donald Kohn. The two policymakers reinforced the low interest rate environment that exists in the U.S. and hinted that the tightening of monetary policy could be further in the future than expected.
Today traders will want to be focused on the European CPI Flash Estimate and the U.S. Pending Home Sales. CPI is an important measure when central bankers determine where to set their key interest rate. A higher than expected CPI could be a positive for the EUR as high inflation could factor in on the decision by the European Central Bank as to when they will begin to raise interest rates. Pending Home Sales are a key data release from the U.S. and shows forward looking data for the U.S. economy.
Forex Trader Library Receive over 15 hours (8 CD's) of our best Forex trading education in one package! Containing the newest Advanced Forex CD, this education pack focuses on exactly what you need to know to become a successful Forex Trader.