Forexpros.com Daily Analysis - 06/01/2010

[forexpros]

Forexpros Daily Analysis Jan 6, 2009


Free webinar TOMORROW on Forexpros - Identifying Low Risk, High Reward, and High Probability Trading Opportunities For Short Term Forex Traders.

Expert: Sam Seiden
When: Thu, Jan 7, 2010, 12:00 EST

During this session, we will apply what we learned during session one to the world of active short term trading in the Forex markets. We will walk through the trade selection process, applying our rule based strategy to identify price levels where demand and supply are out of balance and where profit margins are large offering us significant
risk/reward opportunities.
This webinar is the second of a three part series brought to you by Online Trading Academy and Forexpros.

to join free.

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Fundamental Analysis: Interest Rate Decision

The Bank of England (BOE) decision on short term interest rate is due to be published tomorrow (Jan 7). The decision on where to set interest rates depends mostly on growth outlook and inflation. The primary objective of the central bank is to achieve price stability. High interest rates attract foreigners looking for the best "risk-free" return on their money, which can dramatically increases demand for the nation's currency.
A higher than expected rate is positive/bullish for the GBP, while a lower than expected rate is negative/bearish for the GBP.
Analysts predict that the rate will remain at 0.50%.

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[color=black]With astonishing accuracy, the Euro stopped at the suggested reversal point 1.4485 (yesterday