south korean economy down

SEOUL, March 3 (Reuters) - The South Korean won fell over 1 percent to drift around an 11-year low against the dollar early on Tuesday as deepening worries about the global financial sector hit riskier assets including Seoul stocks. The won found some relief however from caution over possible dollar-selling by foreign exchange authorities as they were reported carrying out intervention on Monday to help the currency cut losses. The local unit was quoted at 1,586.1/7.7 per dollar as of 0020 GMT, compared with Monday's domestic close of 1,570.3. It weakened to as soft as 1,593.9, a notch above's Monday's intraday low of 1,594.9, the weakest since March 10, 1998. "The won is expected to weaken past the 1,600 (per dollar) line as it's surrounded by bearish factors, especially worries about the global financial sector, which have pushed local shares below 1,000 points," said an analyst at a local futures firm. Seoul stocks fell 1.44 percent as foreign investors sold a net 11.6 billion won worth of shares in the country's main exchange. Foreigners unloaded a combined net 2.38 trillion won over the previous 15 consecutive sessions, hurting South Korea's balance of payments. Central bank data released earlier showed the country's foreign exchange reserves slid by $200 million in February, the first fall in three months. [ID:nSEO260417] 0020 GMT prev close Won 1,586.1/7.7 1,570.3 Yen/won 16.3200/84 16.1030/82 KOSPI 1,004.19 1,018.81 (Reporting by Cheon Jong-woo; Editing by Jonathan Hopfner)

Thursday, May 20, 2010

Forex - British Pound

I'd like to take a long term view of the British Pound to help put things into perspective. In the above chart you will notice that the rally which began in January of this year has abruptly stopped dead in its tracks at the 170.00 level. What is so significant about the 170 level? Well if you look back a few years you will notice that a major low was made in Novemeber 2005. This low is now playing as resistance and is why the British pound has stopped at this level.




My personal opinion is that the British Pound will rally due to the 8 year cycle which indicates that this currency should be in an uptrend for the next several years. Having said that, I will look for buy signals to position myself in the direction of the major trend.

Posted by Kevin at 9/05/2009
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