Posts from — January 2007

As mentioned last week, the GBP/JPY did in fact make the 100 pip gain. Not only that, but this week it will close where no week has closed since late 1992, passing the highest weekly close of 1998. This is greatly due to the surprise move of the Bank of Japan to keep interest rates at .25%. Three out of nine votes however were to raise rates, where the decisions in the last six months were all unanimous.

The UK surprise rate hike yesterday to 5.25% came early and helped the sterling march to new levels against most currencies. The GBP/JPY in particular is getting very close to a high set in August 1998. A monthly chart shows there is still a 100 pip gain possible before getting to it’s highest close at 236.85.

We write about the USD/CAD again, this time after it did in fact breakout of the range as I mentioned in an earlier post. Not only did it breakout of the range, but it closed at a new daily high. We have not seen it close this high since December 28th, 2005! Oil prices didn’t help the Canadian Dollar much as oil dropped lower to now around $56.85 per barrel. There isn’t much in the way of resistance until 1.1975, the 11/15/2005 high.