NEWS / Foreign Exchange

Fundamental analysis for the GBPUSD breaks above 2.00

Just likethe World-Signals forecast by the recent days the cable break the level above2.0000 making 15-years record. The main reason for the cable strong gainsagainst the dollar are speculations based on not so strong fundamental reasons.The dollar is weak and the traders avoid any dollar holds betting on the cable.

If weanalyses the fundamental situation between USA and UK we will not findsignificant difference. The interest rates in the US are higher than the UK.The tendency and in both countries are mixed with mostly expectations forleaving of the interest rates unchanged. The situation in the world??™s biggesteconomy is not so bad and most of the indicators show growth in USA. Theunemployment sector is never being in so good situation, the trade balance isrecovering, just the housing market is worse than the normal, but it is normalhaving a mind the high interest rates of 5.25% in USA.

The balloonmarket continues based on speculations and for the GBPUSD trading shouldcontinue to levels above 2.04.