CME Opening Commentary

The British Pound is trading inside yesterday’srange after posting a strong gain on Tuesday for the ninth consecutive day.

The British Pound is trading insideyesterday’s range after posting a strong gain on Tuesday for the ninthconsecutive day. Despite overnight efforts to break the Sterling,it was able to hold its ground on the heels of an unexpected drop in U.K. joblessclaims in December. The report showed that this key economic indicator droppedto its lowest level in 21 months.

On Tuesday the Pound gainedconsiderable ground versus the Greenback after a report showed consumer priceinflation had exceeded analysts’ forecasts. The current strength is reflectinga growing consensus that the Bank of England will upwardly revise interestrates later this year.

Wednesday’s high at 1.6054 and adowntrending Gann angle from the November 4 top at 1.6271 at 1.6011 areproviding the resistance this morning. Although it may be a lot to ask thismarket to continue to rally, the fundamentals continue to support a rally. Thismay mean that even if the Sterlinghas a correction, it is likely to fall into the hands of waiting buyers.

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James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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